Which of the Following Is the Most Accurate Statement About

question 147

Multiple Choice

Which of the following is the most accurate statement about the effects of quality change on the CPI?

• A)Even though the BLS adjusts the prices of products in the CPI basket when the quality of the products changes,changes in quality are still a problem because quality is so hard to measure.
• B)Because the BLS adjusts the prices of products in the CPI basket when the quality of the products changes,changes in quality are no longer a problem for the CPI.
• C)The BLS does not adjust the CPI for quality changes.
• D)Most economists believe that changes in the quality of goods included in the CPI basket do not bias the CPI as a measure of the cost of living.

---

Definitions:

Missing Amount

A term used in accounting and finance to denote a value that must be found within a set of numbers or financial statements when it is not explicitly provided.

Service Business

A type of business that provides intangible products, such as expertise, time, or effort, to consumers in exchange for payment.

Retail Business

A type of business that sells goods directly to consumers, typically operating from physical locations or through online platforms.

Manufacturing Business

A type of business that produces finished goods from raw materials by using various processes, machinery, and operations.