To reduce the bias in the consumer price index, the Bureau of Labor Statistics
A) updates the market basket every 10 years, rather than every two years.
B) updates the market basket every two years, rather than every 10 years.
C) incorporates substitutions by consumers when prices of specific products fall rapidly.
D) incorporates substitutions by consumers when prices of specific products rise rapidly.
B
You might also like to view...
During October and November 2008, gasoline prices were falling dramatically, making travel by car less expensive but air travel prices were as high as ever. What is TRUE about consumer preferences, possibilities, or choices?
A) The relative price of air travel in terms of travelling by car decreases. B) If travelling by car is a normal good, both the substitution and income effects would lead to a decrease in travelling by car. C) The consumers' budget line would shift outward and its slope would not change. D) If air travel is a normal good, both the substitution and income effects would lead to an increase in air travel.
Electronics firms may be able to get patents on their ideas. Doing so makes their ideas
a. private goods rather than public goods. This gives people more incentive to engage in research. b. private goods rather than public goods. This gives people less incentive to engage in research. c. public goods rather than private goods. This gives people more incentive to engage in research. d. public goods rather than private goods. This gives people more incentive to engage in private research.
In the Edgeworth box shown below, 
A. the relative prices shown will bring equilibrium without changing. B. there is more clothing demanded than is available. C. there is more food demanded than is available. D. there is less food demanded than is available.
In the market for birth control devices, if the number of women of child-bearing age increases, the
A. demand curve will shift to the left. B. supply curve will shift to the left. C. demand curve will shift to the right. D. supply curve will shift to the right.