Which of the Following Statements Is True

question 43

Multiple Choice

Which of the following statements is true?

• A) The advantage of variable-weight indexes is that they reflect the prices of the basket of goods that people purchased in the base year.
• B) The disadvantage of variable-weight indexes is that they reflect the prices of the basket of goods that people actually purchased in the current year.
• C) The advantage of variable-weight indexes is that they provide better measures of inflation than do fixed-weight indexes.
• D) The disadvantage of variable-weight indexes is that the current basket may contain many goods that did not exist or were of different quality in the base year.

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Definitions:

Sant'Andrea

A reference to the Church of Sant'Andrea in Mantua, Italy, renowned for its Renaissance architecture designed by Leon Battista Alberti.

Alberti

Leon Battista Alberti, a Renaissance humanist polymath who contributed significantly to architecture, theory, and the arts in 15th-century Italy.

Facade

Usually, the front of a building; also, the other sides when they are emphasized architecturally.

Contrapposto

An art term describing a human figure standing with most of its weight on one foot, such that its shoulders and arms twist off-axis from the hips and legs, giving the figure a more dynamic, or relaxed appearance.