Cost-based indexes are more stable than labor-based indexes,since they are not affected by price fluctuations or by changes in the level of automation.

Question

Quizplus · Accepted Answer

Cost-based indexes calculate price changes based on the cost of producing a particular product or service. Labor-based indexes, on the other hand, take into account the cost of labor involved in producing the product or service. Cost-based indexes are more stable because they are not affected by price fluctuations or changes in automation levels, which can impact the cost of labor. Therefore, the answer is true.

Cost-Based Indexes Are More Stable Than Labor-Based Indexes,since They Are