The Consumer Price Index Is Not an Accurate Measure of the Cost

question 6

Multiple Choice

The consumer price index is not an accurate measure of the cost of living because:

• A) it measures the goods and services bought by all urban households.
• B) it is made up of a weighted average of prices.
• C) it is made up of a variable basket of goods and services.
• D) it does not fully account for changes in the quality of products.