In constructing the consumer price index for the current year

A. the average price of a "bundle" of goods purchased in a base year is divided by the prices of the same bundle that existed during the current year.
B. the average price of a "bundle" of goods purchased during a base year is divided into the price that existed in the current year.
C. the total cost of a "bundle" of goods purchased in a base year is divided by the cost of the same bundle that existed during the current year.
D. the total cost of a "bundle" of goods purchased in a base year is divided into the cost of the same bundle that existed during the current year.

D. the total cost of a "bundle" of goods purchased in a base year is divided into the cost of the same bundle that existed during the current year.

Economics

You might also like to view...

With respect to property rights and production, explain the differences between the economic organizations known as communism, capitalism, and socialism

What will be an ideal response?

Economics

Joshua consumes only apples and bread and is in consumer equilibrium. Joshua reads that eating bread is healthy, so his total utility from each loaf of bread increases. At his new consumer equilibrium Joshua would consume

A) more apples and less bread. B) fewer apples and more bread. C) some combination of apples and bread corresponding to a lower ratio of the marginal utility of bread to the marginal utility of apples. D) the same quantity of apples and the same quantity of bread.

Economics