Suppose the Bureau of Labor Statistics Uses Ballpark Franks as the Hot

question 110

Multiple Choice

Suppose the Bureau of Labor Statistics uses Ballpark Franks as the hot dogs used when calculating the consumer price index.During 2012,Oscar Mayer aggressively reduces prices.Consumers respond by purchasing more Oscar Mayer and less Ballpark Franks.The 2012 CPI is likely to

• A)overstate the average prices paid by consumers.
• B)overstate the average prices paid by businesses.
• C)understate the average prices paid by consumers.
• D)understate the average prices paid by businesses.
• E)neither understate nor overstate the average prices because some consumers will still buy Ballpark Franks.

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Definitions:

Months Of Age

A measure of age typically used for infants and very young children, expressed in months.

Linguistic Determinism

The theory that human thought processes and perceptions are influenced and restricted by language.

Mental Images

Representations in the mind of an object or scene.

Implicit Memory

Retention of learned skills or classically conditioned associations independent of conscious recollection. (Also called nondeclarative memory.)