If the Price Index for a Particular Year Is 110

question 21

Multiple Choice

If the price index for a particular year is 110, it implies that ________.

• A) prices have increased by 11% over the base year
• B) prices have increased by 10% over the base year
• C) prices have increased by 1.1% over the base year
• D) prices have increased by 0.10% over the base year

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Definitions:

Grapevine

An informal communication channel within organizations where information, often unverified or speculative, spreads quickly among employees.

Rumors

Unverified information or stories spread informally, usually carrying uncertainty or ambiguity.

Richest Communication

The most effective and comprehensive form of communication, typically involving multiple channels such as verbal, nonverbal, and written methods.

Organizational Ecology

A theoretical and empirical approach in sociology that considers the environment, evolution, and life cycles of organizations.