Which of the following is not a widely acknowledged problem with using the CPI as a measure of the cost of living?
A)substitution bias
B)introduction of new goods
C)unmeasured quality change
D)unmeasured price change

Question

Quizplus · Accepted Answer

Unmeasured price change is not a widely acknowledged problem with using the CPI as a measure of the cost of living. In fact, it is one of the main factors that the CPI attempts to capture by tracking the prices of a fixed basket of goods and services. The other three options, substitution bias, introduction of new goods, and unmeasured quality change, are all recognized issues with the CPI.

Which of the Following Is Not a Widely Acknowledged Problem