Author Question: Which of the following makes the Consumer Price Index a less accurate measure of the cost of living? ... (Read 40 times)

humphriesbr@me.com · **on:** Jun 30, 2018

Which of the following makes the Consumer Price Index a less accurate measure of the cost of living?

i. The monthly price survey conducted to collect information about prices is very unreliable.
ii. The existence of a new goods bias in the calculation of the CPI
iii. The existence of a quality change bias in the calculation of the CPI
A) i, ii, and iii B) i and ii C) i only D) ii only E) ii and iii

Question 2

Refer to Figure 18.2. The opportunity cost of producing fishing poles in Macadamia is

A) 3/4 of a spear. B) 5/6 of a spear. C) 6/5 spears. D) 4/3 spears.