-If year 2 is the base year, the price index number for year 1 is:
A) 75.0.
B) 100.0.
C) 150.0.
D) -100.0.

Name: -If year 2 is the base year, the price index number for year 1 is: A) 75.0. B) 100.0. C) 150.0. D) -100.0.
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Question

-If year 2 is the base year, the price index number for year 1 is:
A) 75.0. 
B) 100.0. 
C) 150.0. 
D) -100.0.

Quizplus · Accepted Answer

The price index number for a base year is always 100. Since year 2 is the base year, the index for year 1 being 75.0 indicates that prices in year 1 were 75% of those in the base year (year 2), showing a decrease or that they were lower compared to the base year.

-If Year 2 Is the Base Year, the Price Index