When the market basket is tracked over time the goods within the basket:
A. reflect the typical consumer each year, but prices are held constant, so it captures if we are consuming more or less as an economy.
B. remain the same, so only changing prices are captured.
C. remain the same, but some prices are held constant on items that are important to consumers.
D. reflect the typical consumer each year, so it captures how consumers are affected each year.
Answer: B
You might also like to view...
To examine a real-world issue, economists look at the real-world results to see how they differ from those of a free market
a. True b. False Indicate whether the statement is true or false
Jeff owns a garage and has 3 mechanics to help him. With the tools used being fixed in the short run, his production function is given by 5 + 2L = Y , where L is the number of mechanics and Y is the number of cars they can fix. If Jeff hires a fourth mechanic, what will be the marginal product of the new mechanic hired?
a. 11 b. 13 c. 2 d. 7
Net exports are positive when exports are greater than imports.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. If this farmer is maximizing his profits, his TVC is
A. $24. B. $42. C. $108. D. $255.