A Fixed-Weight Price Index

question 76

Multiple Choice

A fixed-weight price index

• A)equals the value of current output at current prices divided by the value of current output at base-year prices.
• B)equals the value of a fixed basket at current prices divided by the value of a fixed basket at base-year prices.
• C)is used to calculate the GDP deflator.
• D)is misleading because it cannot distinguish between nominal and real measures.

---

Definitions:

Social Organization

The structured arrangement of relationships and roles within a group or society that dictates how they interact and work together to achieve communal goals.

Higher Status

A position that ranks above others in a given context, often associated with greater authority, respect, or value.

Reward Allocation Norm

Refers to the standards or criteria used to distribute rewards or outcomes among members of a group or organization, based on their contributions or performance.

Piece Rate

A compensation system where a worker is paid a fixed amount for each unit of product they produce or service they complete.