Author Question: The market basket used to calculate the CPI is revised monthly to more accurately depict consumers' ... (Read 60 times)

yoroshambo · **on:** Jun 29, 2018

The market basket used to calculate the CPI is revised monthly to more accurately depict consumers' choices. The price data for the CPI are collected every month. Are the previous sentences true or false?

What will be an ideal response?

Question 2

Economic efficiency definitely occurs whenever

A) a firm cannot increase its output without increasing all its inputs.
B) there are no implicit costs.
C) the most modern technology is used in the production process.
D) the firm produces a given output at the least cost.

frre432 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The first sentence is false and the second is true. The point of the CPI is to determine how the prices of a fixed basket of goods and services change over time, so the CPI basket is revised only infrequently. However, the prices for the goods and services in the basket are collected monthly so that the CPI can be computed monthly.

Answer to Question 2

D