Economics · Oct / Nov 2020 · Paper 12 · Question 23
2281Inflation
Some goods take a greater percentage of a typical household's total spending than others. How is this accounted for in the construction of a consumer prices index?
- Aby deducting the goods
- Bby giving a weight to the goods
- Cby taking an average of price fluctuations during a year
- Dby using the price elasticity of demand for the goods
As printed in the paper
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Correct answer: B. by giving a weight to the goods
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