How Are the Weights on the Various Goods and Services

question 121

Multiple Choice

How are the weights on the various goods and services in the CPI basket determined?

• A) Each good and service is weighted according to its quantity.
• B) A survey is conducted to determine how much of each good and service typical consumers purchase.
• C) The weights equal the ratio of expenditures on each good or service divided by the total consumption expenditures in the GDP accounts.
• D) Each good and service is weighted according to its price.

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Definitions:

Anhedonia

The inability to feel pleasure in normally pleasurable activities.

Delusions of Reference

False beliefs that insignificant remarks, events, or objects in one's environment have personal meaning or significance.

Grandiose Delusion

A false belief of one's own superiority, greatness, or omnipotence that is not grounded in reality.

Delusions

Fixed false beliefs that are resistant to reason or confrontation with actual fact, often found in psychological disorders such as schizophrenia.