Which of the Following Makes the Consumer Price Index a Less

question 26

Multiple Choice

Which of the following makes the Consumer Price Index a less accurate measure of the cost of living?
i. The monthly price survey conducted to collect information about prices is very unreliable.
ii. The existence of a new goods bias in the calculation of the CPI.
iii. The existence of a quality change bias in the calculation of the CPI.

• A) i only
• B) ii only
• C) i and ii
• D) ii and iii
• E) i, ii and iii

---

Definitions:

Planning Acumen

The ability to effectively plan and strategize future actions, often considering various factors and outcomes.

Low-Cost-Provider Strategy

A competitive approach where a company aims to become the lowest cost producer in its industry to attract price-sensitive customers.

Efficiency

Results achieved compared to resource inputs.

HR Strategy

HR Strategy is a comprehensive plan that outlines how a business will manage its human resources to align with its business goals, including aspects such as recruitment, development, retention, and compensation of employees.