Suppose Hypothetically That You Buy a Lot of Food Such

question 31

Multiple Choice

Suppose hypothetically that you buy a lot of food such as tofu, veggie burgers, and organic fruit that are not included in the market basket used to compute the CPI. In addition, suppose that all of these goods have become cheaper over the last year, while the overall CPI has increased by 6 percent. Then which of the following is true ?

• A) The CPI will understate the negative impact of inflation on your purchasing power and standard of living.
• B) The CPI will still accurately state the negative impact of inflation on your purchasing power and standard of living.
• C) The CPI will overstate the negative impact of inflation on your purchasing power and standard of living.
• D) Inflation has a larger effect on your standard of living than on the average consumer.

---

Definitions:

Emotional Exhaustion

A state of feeling emotionally drained or depleted as a result of accumulated stress from personal or work life.

Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged and intense stress.

High Risk

A situation or individual exposed to a high level of danger, harm, or failure.

Secure Wall Framed Items

Measures taken to ensure that framed pictures or artworks on walls are safely and firmly attached, often to prevent damage or injury.