Problems with a Fixed-Weight Price Index Include All of the Following

question 93

Multiple Choice

Problems with a fixed-weight price index include all of the following except one.Which is the exception?

• A)the index utilizes prices from the base year only
• B)the index does not account for relative price changes over time
• C)price distortions only decrease when there is a long time period covered
• D)base year does not include new products which came into existence later
• E)the price index does not take into consideration quality changes

---

Definitions:

Establish Trust

Establishing trust involves creating a reliable, dependable, and safe environment or relationship where confidence in one another can be built.

Verbal and Nonverbal Cues

Signals or messages expressed through spoken words and bodily gestures respectively, used in communication.

Confrontational

A term not directly related to psychology; however, if in context, it could describe an approach or method that directly challenges a person's beliefs or behaviors.

Structured Interview

A standardized method of interviewing where all candidates are asked the same set of predefined questions in the same order to ensure consistency.