The CPI May Be an Inaccurate Measure of Changes in the Price

question 87

Multiple Choice

The CPI may be an inaccurate measure of changes in the price level because

• A)consumers rarely switch to less expensive products when the price of a particular good increases.
• B)it is a changing quantity index.
• C)changes in product quality are not taken into account.
• D)the market basket of goods was determined arbitrarily by the government without conducting surveys of spending patterns.

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Definitions:

Charophytes

A group of green algae thought to be the closest relatives of land plants, sharing key traits for terrestrial adaptation.

Desiccation

The process of extreme drying out or dehydration, which can be detrimental to living organisms as it leads to loss of moisture and can disrupt cellular and systemic functions.

Sporophyte

The diploid, spore-producing phase in the life cycle of plants that undergo alternation of generations.

Vascular Tissue

Specialized plant tissue consisting of xylem and phloem, responsible for water, nutrient transportation, and structural support.