To Measure Core Inflation, the BLS Excludes _______ from the Basket

question 132

Multiple Choice

To measure core inflation, the BLS excludes _______ from the basket of goods used to calculate the CPI.

• A) food and energy
• B) food, clothing, and housing
• C) food and housing
• D) housing and energy

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Definitions:

Fixed Proportions Technology

Fixed proportions technology is a production process where inputs must be used in strict, fixed ratios to produce outputs, with no possibility of substitution between inputs.

Pollution

The presence of substances in the environment that are harmful to human health, natural ecosystems, or the climate.

Output

The total amount of products or services produced by a company, industry, or economy.

Marginal External Costs

The additional cost imposed on third parties not involved in a transaction or decision, for each additional unit produced or consumed.