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 50 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?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

The Major Cleavage Patterns of Animal Embryos The Major Cleavage Patterns of Animal Embryos
Teres major Teres major
Pollution in the Industrializing Nations has become a major problem. The air in Beijing is hazardous ... Pollution in the Industrializing Nations has become a major problem. The air in Beijing is hazardous ...
Coronary arteries and major vessels (A) anterior (B) posterior. Coronary arteries and major vessels (A) anterior (B) posterior.
Major veins of the body. Apply deep flushing effleurage to the arms and legs from distal to ... Major veins of the body. Apply deep flushing effleurage to the arms and legs from distal to ...
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Immune responses Animation

For a complete list of videos, visit our video library