The Measurement Problems in the Consumer Price Index as an Indicator

question 58

Multiple Choice

The measurement problems in the consumer price index as an indicator of the cost of living are important because

• A)even the appearance of high rates of inflation cause voters to become disenchanted.
• B)politicians have manipulated the measurement problems to their advantage.
• C)many government programs use the CPI to adjust for changes in the overall level of prices.
• D)if the price level is overstated, consumers will be taken advantage of by sellers of consumer goods.

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Definitions:

Unfair Labor Practices

Conduct by unions or employers that infringes upon employees' rights or breaches labor legislation.

Railway Labor Act

A U.S. law enacted in 1926 that seeks to avoid any interruption to commerce or to the operation of any carrier, facilitating labor relations in the railway and airline industries.

Trucking Industry

A sector encompassing businesses that provide transportation of goods by road, including both long-haul and local deliveries.

Clayton Act

An antitrust law enacted in the U.S. to promote fair competition and prevent monopolies, with provisions protecting labor unions and their activities.