How Are the Weights on the Various Goods and Services

question 121

Multiple Choice

How are the weights on the various goods and services in the CPI basket determined?

• A) Each good and service is weighted according to its quantity.
• B) A survey is conducted to determine how much of each good and service typical consumers purchase.
• C) The weights equal the ratio of expenditures on each good or service divided by the total consumption expenditures in the GDP accounts.
• D) Each good and service is weighted according to its price.

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Definitions:

Albert Bandura

A psychologist known for his work on social learning theory, emphasizing the role of observational learning, self-efficacy, and modeling in behavior.

Julian Rotter

An American psychologist known for his development of social learning theory and the concept of locus of control.

Personality Theory

A framework or model designed to explain and predict individual behavior and psychological processes based on characteristic patterns of thoughts, feelings, and behaviors.

Personality Development

The continuous growth and change in personality traits throughout an individual's life.