Q3. Which of the following is NOT one of the steps in calculating the Consumer Price Index (CPI)?

A)   Adjust the observed prices of goods and services for quality changes and new goods.

B)   Conduct periodic surveys of goods and services prices.

C)   Calculate the CPI based on the cost of the CPI basket in the current period and the base period.

Q4. Keith Keeley, an associate at Friedman, Harris, and Levinsky LLC, was requested by a Managing Director of the firm to help construct the consumer price index (CPI). Keeley sought to determine which goods and services to include in the index by observing what a typical U.S. household purchases. He then took a large survey of individuals to determine what percentage of their disposable income they spend on each of the items and used these percentages as the weights for the major categories in the CPI. The steps that Keeley undertook are all part of which stage in constructing the CPI index?

A)   Calculate the CPI.

B)   Select the CPI basket.

C)   Conduct the monthly price survey.

答案和详解如下：

Q3. Which of the following is NOT one of the steps in calculating the Consumer Price Index (CPI)?

A)   Adjust the observed prices of goods and services for quality changes and new goods.

B)   Conduct periodic surveys of goods and services prices.

C)   Calculate the CPI based on the cost of the CPI basket in the current period and the base period.

Correct answer is A)

The three stages in calculating the CPI are:

1.      Select the CPI basket.

2.      Conduct a monthly price survey.

3.      Calculate the CPI relative to the base period.

The effects of new goods and quality changes lead to biases that cause the CPI to overstate the inflation rate.

Q4. Keith Keeley, an associate at Friedman, Harris, and Levinsky LLC, was requested by a Managing Director of the firm to help construct the consumer price index (CPI). Keeley sought to determine which goods and services to include in the index by observing what a typical U.S. household purchases. He then took a large survey of individuals to determine what percentage of their disposable income they spend on each of the items and used these percentages as the weights for the major categories in the CPI. The steps that Keeley undertook are all part of which stage in constructing the CPI index?

A)   Calculate the CPI.

B)   Select the CPI basket.

C)   Conduct the monthly price survey.

Correct answer is B)

A CPI is constructed in three stages: select the CPI basket, conduct the monthly price survey and calculate the CPI. The process described includes steps taken in selecting the CPI basket.