The Price of a Basket of Goods in 2000 Was

question 60

Multiple Choice

The price of a basket of goods in 2000 was $500. If the same basket cost $600 in 2002, identify the correct statement from the following.

• A) The price index in 2002 must have been 100 points higher than in 2000.
• B) The price increase between 2000 and 2002 was 10%.
• C) If 2000 is considered the base year, then the price index in 2002 must have been 120.
• D) If 2002 is considered the base year, then the price index in 2000 must have been 70.

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Definitions:

Objectively Identical

Items or entities being exactly the same in reality, regardless of perceptions or opinions.

Reframed

Reframed refers to the process of changing the frame or perspective from which a situation or concept is viewed, often used in cognitive behavioral therapy to help individuals alter negative thought patterns.

Unifying Themes

Core ideas or principles that connect and provide a cohesive understanding across different concepts or areas of study.

Interactionist Theories

Theories that suggest that both individual behaviors and societal factors interact to influence human development, social behavior, and personality.