Weighting Monetary Components in a Simple-Sum Aggregate Index ________

question 84

Multiple Choice

Weighting monetary components in a simple-sum aggregate index ________.

• A) has never been attempted because it is too complex
• B) might be attempted with rigourous use of microeconomic, aggregation and index number theory
• C) might not perform as well as the simple-sum index
• D) might not predict inflation and business cycles better than conventional measures

---

Definitions:

Small Towns

Communities with a small population, often characterized by a close-knit society and slower pace of life.

Bribery

The act of offering, giving, receiving, or soliciting something of value as a means of influencing the actions of an official or other person in a position of power.

Gifts

Are voluntary transfers of property or funds from one individual to another without the expectation of receiving something in return.

Favorable Duties

Duties imposed by a government that are advantageous to certain industries or sectors, often intended to promote local economic growth.