Which of the Following Is True About the Consumer Price

question 153

Multiple Choice

Which of the following is true about the consumer price index (CPI) and the GDP price index?

• A)Both measures weigh prices by the quantities consumed in some base year.
• B)Both yield identical numbers for price level changes for any two years.
• C)A price level change indicated by the CPI is usually smaller because it includes only prices for a limited number of goods.
• D)The CPI measures changes in relative prices of goods; the GDP price index measures changes in the price level.
• E)A price level change indicated by the GDP price index is usually smaller because people tend to find substitutes for goods whose prices rise sharply.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, typically developed during infancy.

Conservation

The protection and preservation of natural resources, environments, or cultural heritage.

Lateralization

Refers to the specialization of the left and right hemispheres of the brain for different tasks and functions.

Hemisphere

One half of the spherical brain, typically referring to the right or left hemisphere, each responsible for different functions and cognitive processes.