To Reduce the Bias in the Consumer Price Index,the Bureau

question 91

Multiple Choice

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

• A)updates the market basket every two years,rather than every 10 years.
• B)updates the market basket every 10 years,rather than every two years.
• C)incorporates substitutions by consumers when prices of specific products rise rapidly.
• D)incorporates substitutions by consumers when prices of specific products fall rapidly.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Usury Laws

Legislation enacted to place a limit on the interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.

Below-Market Interest Rate

An interest rate lower than the current market, usually subsidized by a government or institution.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, providing a measure of performance beyond accounting profit.