In 2001, in Calculation of the Implicit Price Index, Statistics

question 156

Multiple Choice

In 2001, in calculation of the implicit price index, Statistics Canada switched from fixed based price index method to a chain-weighted index.The main reason for this was:

• A)to avoid complex calculation of the fixed based price index.
• B)to better represent the weight of each category especially the information technology sector.
• C)to avoid underestimation of the GDP growth, due to the rapid growth in the information technology sector.
• D)to be able to use the relatively constant weights for the items in the GDP year after year.

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Definitions:

Benefits Sought

The specific value or advantage consumers look for in a product or service, which drives their purchasing decisions.

Observable Customer Characteristics

Traits or behaviors of consumers that can be directly seen and measured by marketers.

Geographic Variables

Factors related to location that influence consumer behavior, marketing strategies, and business operations.

Behavioral Variables

Factors that influence the actions of individuals or groups, often considered in marketing to understand consumer decision-making processes.