The CPI Overstates Inflation Because the Average Consumer Buys

question 194

Multiple Choice

The CPI overstates inflation because the average consumer buys

• A)the same basket of goods every week.
• B)more of those goods whose relative price has risen.
• C)less of those goods whose relative price has risen.
• D)lower quality goods if they have a choice.
• E)a generally random assortment of goods and services each week because what is purchased depends on what the consumer needs.

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Definitions:

Volcanic Eruption

The explosive release of magma, ash, and gases from a volcano, affecting its surrounding areas.

Rotational Slide

A type of landslide characterized by the downhill rotation of rock or soil mass along a concave-upward surface.

Earth Flow

A flowing mass of weak, mostly fine-grained material, especially mud and soil.

Debris Flow

A fast-moving mass of loose mud, sand, soil, rock, and water that travels down slopes and valleys, often caused by heavy rain or rapid snowmelt.