I to Construct a Special-Purpose Index Designed to Measure General

question 59

Multiple Choice

i. To construct a special-purpose index designed to measure general business activity, the weights
Are based on the judgments of the statistician and assigned to each series.
ii. The Consumer Price Index measures the change in prices of a fixed market basket of goods and
Services from one period to another.
iii. The CPI is not just one index, but includes a large number of groups, subgroups and selected
Items, such as a food index, a transportation index and a shelter index.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Quality Control

The processes an organization uses to maintain its established quality standards.

Production

The process of creating goods and services, involving tasks such as design, raw materials sourcing, and manufacturing.