Which of the Following Is the Most Accurate Statement About

question 152

Multiple Choice

Which of the following is the most accurate statement about the effects of quality change on the CPI?

• A)Even though the BLS adjusts prices of products in the CPI basket when the quality of the products change, changes in quality are still a problem, because quality is so hard to measure.
• B)Because the BLS adjusts prices of products in the CPI basket when the quality of the products change, changes in quality are no longer a problem for the CPI.
• C)The BLS does not adjust the CPI for quality changes.
• D)Most economists believe that changes in the quality of goods included in the CPI basket do not bias the CPI as a measure of the cost of living.

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Definitions:

Finite Population

A population set that contains a limited number of elements or individuals, making it possible to examine each member of the population in a study.

Arrivals

The process or count of items, people, or entities reaching a destination or entering a system at a particular time.

Little's Law

A fundamental principle in queueing theory stating that the long-term average number of items in a queuing system is equal to the long-term average effective arrival rate multiplied by the average time an item spends in the system.

Toy Store

A retail business specializing in the sale of toys and games for children of various ages.