In a family-budget method of a consumer price index, commodity weights usually represent:
Correct answer: B. Expenditure shares of families
- A. Physical quantities produced
- B. Expenditure shares of families
- C. Profits earned by retailers
- D. Tax rates on commodities
Explanation
The family-budget method assigns weights according to the relative expenditure of households on different groups of goods and services. These weights reflect their importance in the cost of living.
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