In constructing the consumer price index for the current year

A. the average price of a "bundle" of goods purchased in a base year is divided by the prices of the same bundle that existed during the current year.
B. the average price of a "bundle" of goods purchased during a base year is divided into the price that existed in the current year.
C. the total cost of a "bundle" of goods purchased in a base year is divided by the cost of the same bundle that existed during the current year.
D. the total cost of a "bundle" of goods purchased in a base year is divided into the cost of the same bundle that existed during the current year.


D. the total cost of a "bundle" of goods purchased in a base year is divided into the cost of the same bundle that existed during the current year.

Economics

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In the case of a linear demand curve, average revenue is equal to price, while (with the exception of Q = 1 ) marginal revenue is less than price

Indicate whether the statement is true or false

Economics

Suppose that during a given month 200,000 persons who had been self-employed leave their business and get jobs working for other businesses. This might give __________ bias to the __________ indicator

A) an optimistic; unemployment rate B) a pessimistic; unemployment rate C) an optimistic; payroll employment D) a pessimistic; payroll employment

Economics

The difference between the maximum amount that a consumer is willing to pay for a product and the price that is paid for the product describes:

A. consumer surplus. B. the cost of producing a unit of the product. C. marginal utility. D. producer surplus.

Economics

All of the following would increase the natural rate of unemployment EXCEPT

A. government licensing of teachers restricts employment. B. a mismatch of skills and jobs. C. union activity restricts the mobility of labor. D. an economic recession.

Economics