Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The advantage of variable-weight indexes is that they reflect the prices of the basket of goods that people purchased in the base year.
B) The disadvantage of variable-weight indexes is that they reflect the prices of the basket of goods that people actually purchased in the current year.
C) The advantage of variable-weight indexes is that they provide better measures of inflation than do fixed-weight indexes.
D) The disadvantage of variable-weight indexes is that the current basket may contain many goods that did not exist or were of different quality in the base year.