This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Name two major criticisms of the Consumer Price Index (CPI). ... (Read 13 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
on: Jul 24, 2018
Name two major criticisms of the Consumer Price Index (CPI).

Question 2

Which of the following is not true about the Consumer Price Index (CPI)?
 a. It is always a number greater than or equal to 100.
  b. It is the most widely used measure of inflation in the U.S.
  c. Its base year changes periodically.
  d. All of the above statements are true about the CPI.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcabuhat

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 24, 2018
Answer to Question 1

ANY TWO OF THE FOLLOWING ARE OK: 1) THE MARKET BASKET MAY NOT REFLECT CURRENT SPENDING PRIORITIES; 2) IF THE PRICE OF ONE ITEM RISES, CONSUMERS ARE LIKELY TO SUBSTITUTE ANOTHER; 3) THE CPI DOES NOT ADJUST FOR CHANGES IN QUALITY; 4) THE CPI DOES NOT TAKE ADVANTAGE OF SALE PRICES; 5) THE CPI DOES NOT MEASURE PRICES FOR RURAL AMERICANS.

Answer to Question 2

A


tichca

  • Hero Member
  • *****
  • Posts: 554
Reply #2 on: Jul 24, 2018
Thank you!


mcabuhat

  • Sr. Member
  • ****
  • Posts: 344
Reply #3 on: Jul 24, 2018
Always glad to help...


« previous next »
 

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Major Impacts on Mercury and on Our Moon Major Impacts on Mercury and on Our Moon
Fires Commonly Are Major Secondary Effects Fires Commonly Are Major Secondary Effects
Major Events in the History of Psychology (3 of 6) Major Events in the History of Psychology (3 of 6)
Basic Food Groups and Their Major Nutrients (Continued) Basic Food Groups and Their Major Nutrients (Continued)
Major Somatic Motor Tracts and Pathways Major Somatic Motor Tracts and Pathways
Layers and Major Structures of the Skin Layers and Major Structures of the Skin
Video: Calvin cycle (The light-independent reactions )

For a complete list of videos, visit our video library