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:

Specific Tariff

A fixed fee imposed by a government on imported or exported goods, which is based on the quantity of the item rather than its value.

World Price

The worldwide market value of a product or service, determined by international supply and demand dynamics.

Baseballs

Baseballs are the spherical sporting equipment used in the game of baseball, consisting of a cork core wrapped in yarn and covered with leather.

Import Quota

A government-imposed limit on the quantity or monetary value of a certain good that can be imported into a country.