Which of These Events Would Cause the Consumer Price Index

question 57

Multiple Choice

Which of these events would cause the consumer price index to overstate the increase in the cost of living?

• A)Car makers benefit from a new technology that allows them to sell higher-quality cars to consumers with no increase in price.
• B)Energy prices decrease,and consumers respond by buying more gas and electricity.
• C)A new good is introduced that renders cellular telephones inferior and obsolete.
• D)All of the above are correct.

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Definitions:

State of Change

The phase or condition that an organization or individual undergoes when transitioning from one set of circumstances to another.

Imbalance of Forces

A situation in which the driving and restraining forces affecting change are not in equilibrium, affecting the rate and success of change processes.

Sergio Marchionne

An influential business executive known for his leadership roles at Fiat Chrysler Automobiles, among other organizations, leading significant turnarounds and company growth.

Dramatic Opportunities

Situations or scenarios that provide significant potential for impactful actions or changes.