Suppose the Typical Consumer Buys More Bananas Than Oranges

question 114

Multiple Choice

Suppose the typical consumer buys more bananas than oranges.In fixing the basket of goods and services for the purpose of calculating the consumer price index,the Bureau of Labor Statistics

• A)ignores the fact that the typical consumer buys more bananas than orange;this procedure does not affect the value of the index.
• B)ignores the fact that the typical consumer buys more bananas than orange;this procedure results in a potentially-serious bias in the index.
• C)places more weight on the price of bananas than on the price of oranges;the weights of the two prices are determined by surveying consumers.
• D)places more weight on the price of bananas than on the price of oranges;the weights of the two prices are determined by the extent to which those prices have changed over the previous year.

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Definitions:

Gathering Insights

The process of collecting and analyzing information to gain a deeper understanding or knowledge about a subject.

Internal Message

Communication that occurs within an organization, intended for employees or members only.

Level Of Detail

The degree of specificity and precision in the presentation of information.

Diverse Information Needs

The requirement for various types of information by different individuals or groups to support decision-making or problem-solving.