A Reason Given Why the CPI Overstates the Cost of Living

question 198

Multiple Choice

A reason given why the CPI overstates the cost of living is that the

• A)CPI only measures the effects of inflation on the poor.
• B)CPI makes no attempt to ascertain what average people buy.
• C)CPI makes no attempt to update the market basket.
• D)BLS audits prices in the same types of stores, rather than shift to cheaper outlets.

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Definitions:

Feedback

A process in which information about past or ongoing performance influences future efforts or behavior.

Rehearsal

The process of practicing or going over content or actions repeatedly to improve performance or memorization.

Obsessive-compulsive Disorder

A common, chronic, and long-lasting disorder in which a person has uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) that they feel the urge to repeat over and over.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that poses little to no actual danger.