A Variable-Weight Price Index

question 81

Multiple Choice

A variable-weight price index

• A)equals the value of current output at current prices divided by the value of current output at base-year prices.
• B)equals the value of a fixed basket at current prices divided by the value of a fixed basket at base-year prices.
• C)is used in the consumer price index.
• D)is misleading because it cannot distinguish between nominal and real measures.

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Definitions:

Mediocre Applicant

A candidate for a position who does not stand out due to average performance, skills, or qualifications.

Contrast Error

A cognitive bias in performance appraisals where the evaluation is based on comparison with other individuals instead of objective standards.

Pollyanna Effect

The inclination among individuals to recall positive events or information with greater precision than negative ones.

Different Background

A different background refers to the diverse experiences, cultures, or education levels individuals come from, contributing to a rich variety of perspectives.