The Bureau of Labor Statistics Has Taken Several Steps to Reduce

question 145

Multiple Choice

The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index.Which of the following is not one of the steps taken to reduce the bias?

• A)using statistical methods to reduce the size of the quality bias
• B)updating the market basket every two years,rather than every 10 years
• C)incorporating substitutions by consumers when prices of specific products rise rapidly
• D)conducting a point-of-purchase survey to track where consumers actually make their purchases

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Definitions:

Market Maker

An individual or firm that continuously buys and sells securities in a financial market to ensure liquidity and stability of prices.

Bid

An offer made by an individual or company to buy a good, service, or asset at a specified price.

Ask

The lowest price a seller is willing to accept for an asset in financial markets.

Profit

is the financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.