Which Statement Does NOT Describe a Problem in Measuring the Consumer

question 49

Multiple Choice

Which statement does NOT describe a problem in measuring the consumer price index (CPI) ?

• A) The CPI measures only private goods and services.
• B) The CPI uses a fixed market basket of goods determined by surveys that are three to five years old.
• C) Approximately 10% of the original market basket must be replaced each year by products that are improved or modified.
• D) The CPI includes new products in its baskets.

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