Which of the Following Is a Reason Why the CPI

question 30

Multiple Choice

Which of the following is a reason why the CPI is not calculated as a simple average of all prices?

• A) Some goods experience large price changes and the CPI would be too variable if computed by a simple average.
• B) Goods differ in their importance in the average consumer's budget.
• C) Some goods never experience price changes and the CPI would not be variable enough if computed as a simple average.
• D) It would be difficult to compute a price index using a simple average of all prices.

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Definitions:

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Psychological or physical limits that define the space between individuals or groups, helping to protect personal integrity and manage interpersonal interactions.

Social Relationships

The connections between individuals based on interactions, affiliations, or feelings which may affect their behavior and attitudes.

Primary Groups

Small, close-knit, and usually long-term social groups characterized by significant personal and emotional bonds.

Social Groups

Collections of individuals defined by common characteristics, such as interests, values, heritage, or occupation.