For the CPI to provide an accurate measure of the prices paid by urban consumers,it is necessary to
A) assign equal weights to all the goods and services included in the market basket surveyed so that nothing is over-weighted.
B) have a market basket that is consistent and corresponds to what households actually purchase.
C) have prices stated in dollars so consumers can compare what they spend.
D) change the market basket each month to reflect the changes that consumers make.
E) make certain that the incomes of the consumers surveyed do not change because such a change would affect the market basket of the goods and services they buy.
Correct Answer:
Verified
Q13: The reference base period for the CPI
Q14: Constructing the CPI involves which of the
Q15: The CPI is calculated by the Bureau
Q16: The Consumer Expenditure Survey measures
A)households' spending patterns.
B)the
Q17: To measure the CPI,the BLS economic assistants
Q19: The reference base period for the CPI
Q20: The CPI is a measure of the
A)percentage
Q21: In 2013,the reference base period for the
Q22: The CPI market basket
A)weights the goods and
Q23: The CPI market basket is determined by
A)tax
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