For the CPI to provide an accurate measure of the prices paid by urban consumers, it is necessary to
A) Assign equal weights to all the goods and services included in the market basket surveyed so that nothing is over-weighted.
B) Have a market basket that is consistent and corresponds to what households actually purchase.
C) Have prices stated in dollars so consumers can compare what they spend.
D) Change the market basket each month to reflect the changes that consumers make
Answer: B) Have a market basket that is consistent and corresponds to what households actually purchase.
You might also like to view...
Suppose the government has a $1.2 trillion budget deficit. If the government borrows $1.2 trillion to finance this deficit and finances the rest by printing money, the amount of new money created will be
A) $0. B) $600 billion. C) $1.2 trillion. D) $2.4 trillion.
How have U.S. imports and exports, as a fraction of GDP, changed from 1970 to the present?
What will be an ideal response?
What are the important factors that determine the velocity of money?
What will be an ideal response?
When the marginal cost curve of the monopolist shifts upward, there will be
A) an increase in both price and quantity. B) an increase in price but a decrease in quantity. C) a decrease in price and in marginal revenue. D) a decrease in quantity and a decrease in marginal revenue.