A Major Drawback of the Aggregate Price Index Is That

question 111

Multiple Choice

A major drawback of the aggregate price index is that:

• A)It does not take into account the fact that some items in the market basket are purchased more frequently than others.
• B)It is difficult to compute.
• C)It is computed by using the values from a single time series or based on a single product.
• D)Percentage comparisons cannot be made to the base year.

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Definitions:

Supplier Services

The range of services provided by suppliers to support their products, including delivery, installation, and maintenance.

Bulk Purchase

The acquisition of goods in large quantities, often at a reduced price, typically for the purpose of resale or large-scale operations.

Value/Cost Scale

A ratio or comparative metric assessing the benefit (value) received relative to the resources (cost) expended.

Criticality Scale

A measure or ranking that identifies the relative importance or urgency of issues, items, or conditions, often used in risk management and prioritization processes.