Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) Inflation is a general rise in the level of prices.
• B) Inflation can affect an individual's purchasing power when money is used as a store of value.
• C) The consumer price index is based on two factors: the cost of housing and the cost of transportation.
• D) The consumer price index measures the changes in prices of goods purchased by a typical consumer.
• E) The base amount for the consumer price index is 100.

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Definitions:

Economic Interest Groups

Organizations that represent the economic interests of their members in political processes.

Business Groups

Organizations formed by companies in similar industries or fields to advocate for their common interests.

Labor Groups

Organizations that represent and advocate for the interests of workers, often focusing on improving working conditions and wages.

Material Incentives

Rewards or tangible benefits used to motivate individuals to perform certain tasks or engage in specific behaviors.