Which of the Following Is a True Statement Regarding a General

question 49

Multiple Choice

Which of the following is a true statement regarding a general price index?

• A) Its computation does not require statistical sampling.
• B) It is narrowly constructed to determine the changing level of prices in a particular segment of the economy.
• C) It is broadly constructed for ascertaining the change in prices for all goods and services.
• D) It cannot be used to compute price-level adjusted historical cost.

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Definitions:

Consumption Possibilities

The range of goods and services that can be consumed given a consumer's income and prevailing prices.

International Trade

The exchange of goods and services across international boundaries or territories, involving the import and export of products.

Opportunity Cost

The worth of the best alternative that is given up in order to make a choice.

Imports

Products or services imported from other countries for sale or consumption.