A major drawback of the aggregate price index is that:
A)It does not take into account the fact that some items in the market basket are purchased more frequently than others.
B)It is difficult to compute.
C)It is computed by using the values from a single time series or based on a single product.
D)Percentage comparisons cannot be made to the base year.

Question

Quizplus · Accepted Answer

The major drawback of the aggregate price index is that it does not take into account the fact that some items in the market basket are purchased more frequently than others. This can cause the index to be biased towards items that are purchased less frequently and may not be reflective of actual consumer spending patterns.

A Major Drawback of the Aggregate Price Index Is That