A Major Drawback of the Aggregate Price Index Is That

question 49

Multiple Choice

A major drawback of the aggregate price index is that

• A) it does not take into account the fact that some items in the market basket are purchased more frequently than others.
• B) it is difficult to compute.
• C) it is computed by using the values from a single time series or based on a single product.
• D) percentage comparisons cannot be made to the base year.

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Definitions:

Poverty

A condition where individuals or communities lack the financial resources to meet basic needs such as housing, food, and healthcare.

Norris-LaGuardia Act

A 1932 U.S. federal law that restricted the power of courts to issue injunctions against non-violent labor disputes and marked a significant step in promoting labor rights.

Peaceful Union Activities

Actions taken by labor unions, such as strikes or protests, conducted lawfully and without violence to advocate for workers' rights and interests.

Property Rights

Legal rights over the use, control, and transfer of property, which can include both physical objects and intellectual property.