Solved

Which of the Following Statements Is True

Question 43

Multiple Choice

Which of the following statements is true?


A) The advantage of variable-weight indexes is that they reflect the prices of the basket of goods that people purchased in the base year.
B) The disadvantage of variable-weight indexes is that they reflect the prices of the basket of goods that people actually purchased in the current year.
C) The advantage of variable-weight indexes is that they provide better measures of inflation than do fixed-weight indexes.
D) The disadvantage of variable-weight indexes is that the current basket may contain many goods that did not exist or were of different quality in the base year.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents