In calculating the CPI, a fixed basket of goods and services is used. The quantities of the goods and services in the fixed basket are determined by

a. surveying consumers.
b. surveying sellers of the goods and services.
c. working backward from the rate of inflation to arrive at imputed values for those quantities.
d. arbitrary choices made by federal government employees.


Ans: a. surveying consumers.

Economics

You might also like to view...

Refer to Figure 8A.1. Moving from K0 to K1

A) saving becomes negative. B) capital stock continues to increase. C) depreciation starts to decline. D) economic growth stops.

Economics

Assuming a closed economy (i.e., NX = O) the data in Figure 2-1 suggest that for each year after 1980

A) private saving could have been either positive or negative. B) private saving was negative. C) private saving was positive. D) private saving equaled zero.

Economics

Which of the following is a game theory strategy for oligopolists to avoid a low-price outcome?

a. Tit-for-tat b. Price leadership c. Cartel d. All of these

Economics

List the four types of efficiency-wage theory

Economics