Which of the Following Statements Is FALSE

question 78

Multiple Choice

Which of the following statements is FALSE?

• A)One problem with any fixed-bundle index as a measure of the cost of living is that it does not account for substitutions that consumers might make in response to price changes.
• B)The producer price index is considered to be a leading indicator of future inflation rates.
• C)The best overall indicator of inflationary pressures in the economy is the GDP deflator.
• D)The consumer price index somewhat understates changes in the cost of living.

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Definitions:

Performance-contingent Basis

A system or approach where rewards, such as bonuses or promotions, are given based on the achievement of specific performance targets or outcomes.

Employee Needs

The requirements or desires of workers, including physiological, safety, social, esteem, and self-actualization needs, that influence motivation and job satisfaction.

Instrumentality

The perception that a particular level of performance will result in the attainment of desired outcomes or rewards.

Work-related Outcomes

Consequences or results that arise in a professional environment, impacting employee performance, satisfaction, or company achievements.