Which of the Following Is NOT a Criticism of the CPI

question 19

Multiple Choice

Which of the following is NOT a criticism of the CPI?

• A) The CPI does not account for the way consumer substitute less expensive items for higher priced items.
• B) The CPI ignores changes in consumption patterns that occur between years in which it revises the index.
• C) The CPI ignores successful new products until long after they have been introduced.
• D) The CPI ignores the changes of prices of goods that firms produce and sell to each other.

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Definitions:

Ocean Currents

Large-scale movements of seawater that circulate throughout the earth's oceans, driven by wind, salinity, and temperature differences.

Landscape Features

Natural and man-made formations or landmarks that characterize a specific area of land, including mountains, rivers, and forests.

Alluvial Fan

A low, gently sloping mass of sediment, shaped like an open fan or a segment of a cone; typically deposited by a stream where it exits a mountain range or joins a main stream.

Ice-Core Data

Data obtained from cylinders of ice drilled from glaciers or ice sheets, used to study past climates and atmospheric compositions.