Which one of the following statements is TRUE of the Consumer Price Index?
A) It does not take account of the price of imported goods and services.
B) It does not take into account the price of used goods.
C) It understates the true rate of inflation.
D) It measures changes in prices of a fixed basket of goods.
D
You might also like to view...
Which of the following is NOT a true statement about industrial policies?
A) Industrial policies can lead to the development of successful industries. B) Not all industrial policies are successful. C) Not all industrial policies are the best use of a nation's resources. D) Most industrial policies are legal under WTO rules.
Suppose Bianca buys a used a textbook from Sebastian for $55. If Bianca's surplus from this transaction was $10, we can infer that:
A. Bianca's reservation price was $45. B. Sebastian's reservation price was $45. C. Bianca's reservation price was $60, and Sebastian's reservation price was $50. D. Bianca's reservation price was $65.