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.

---

Definitions:

Seconal

A brand name for secobarbital, a barbiturate used as a sedative and hypnotic medication.

Drug Tolerance

A state where an individual's reaction to a drug decreases with its continued use, leading to the need for higher doses to achieve the same effect.

Dependency

A state of relying on or being controlled by something or someone else for support or existence.

Pseudoinsomnia

A sleep disorder in which an individual believes they have not slept, despite evidence of normal sleep patterns.