Suppose the Price Index Is 100 in the Base Year

question 2

Multiple Choice

Suppose the price index is 100 in the base year and the price of a pound of oranges in that year is $1.96.Now, if the price index changes to 105 in the following year, how much would a pound of oranges cost?

• A)$2.45
• B)$0.25
• C)$1.96
• D)$2.06
• E)$1.50

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Definitions:

Psychosurgery

A type of brain surgery, such as lobotomy, performed to alter behavior and treat mental illness by removing or destroying brain tissue.

Electroshock Treatment

Also known as electroconvulsive therapy (ECT), a psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Memory Loss

The inability to remember information or experiences, ranging from temporary forgetfulness to chronic amnesia.

Prefrontal Lobotomy

A now rare neurosurgical procedure that was once used to treat mental disorders by cutting connections in the brain's prefrontal cortex.