The Bureau of Labor Statistics Has Taken Several Steps to Reduce

question 145

Multiple Choice

The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index.Which of the following is not one of the steps taken to reduce the bias?

• A)using statistical methods to reduce the size of the quality bias
• B)updating the market basket every two years,rather than every 10 years
• C)incorporating substitutions by consumers when prices of specific products rise rapidly
• D)conducting a point-of-purchase survey to track where consumers actually make their purchases

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Definitions:

Bargain Purchase Option

An option in a lease that allows the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than its estimated fair market value.

Capital Lease

A lease agreement that transfers substantially all the risks and benefits of ownership to the lessee, effectively treated as a purchase by the lessee.

Unguaranteed Residual Value

The estimated future value of an asset at the end of its lease term that is not guaranteed by the lessee or a third party.

Lease Obligation

A financial commitment to make future payments under a lease agreement.