Exhibit 19-5

question 64

Multiple Choice

Exhibit 19-5.Firms A,B,and C operate in the market for computers.Each firm's product is popular in the market and distinct from what the other firms offer.The following table shows the prices of laptops from 2005 through 2007. Refer to Exhibit 19-5.Suppose this data was collected from a particular town,where people have a preference for firm C's laptops.If 2005 is used as the base year,which of the following statements will be true?

• A)The unweighted price index for 2007 understates the fall in the prices of laptops.
• B)The unweighted price index for 2006 overstates the fall in the prices of laptops.
• C)The unweighted price index should only use the data for laptops produced by firms A and B to provide an accurate picture of the change in prices.
• D)The unweighted price index will better reflect the change in prices over these years than a weighted price index.

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Definitions:

Reward Deficiency Syndrome

A theoretical neurological condition posited to predispose individuals to addiction and compulsive behaviors due to deregulation of the reward pathways.

Enlarged Ventricles

A condition where the brain's ventricular system is larger than normal, which can indicate brain atrophy or other disorders.

Somatosensory Cortex

A region of the brain located in the parietal lobe that processes sensory information from various parts of the body, including touch, temperature, and pain.

Parietal Lobes

Regions of the brain located behind the frontal lobes, involved in processing sensory information related to taste, temperature, and touch, as well as spatial orientation and navigation.