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Which of the Following Is a Shortcoming of a Fixed

question 65

Multiple Choice

Which of the following is a shortcoming of a fixed market basket type index?
I.It does not reflect consumer responses to changing prices.
II.It excludes new goods and services.
III.It may not completely account for quality changes.


Definitions:

Loop

A structure, series, or process the end of which is connected to the beginning.

Axial Loading

Load applied along or parallel to the main axis of an object, typically leading to compressive or tensile stress.

Centrifugal Loading

The force exerted outward on a body moving in a circular path around a central point.

Centripetal Loading

The force acting on a body moving in a circular path directed towards the center around which the body is moving.

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