Which Statement Is NOT True

question 205

Multiple Choice

Which statement is NOT true?

• A) The consumer price index does not account for product substitutions well.
• B) The consumer price index does not account for all goods and services consumed by households.
• C) The consumer price index is a cost-of-living index.
• D) The consumer price index measures inflation.

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Definitions:

Consumption Behavior

The patterns and habits that consumers exhibit in purchasing and using goods and services.

High-calorie Items

Foods or beverages that are densely packed with calories, often with high levels of fat or sugar.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer receives from consuming one additional unit of a good or service.

Price of Diamonds

The cost at which diamonds are sold or bought, influenced by several factors including quality, supply, and demand.