One of the widely acknowledged problems with using the consumer price index as a measure of the cost of living is that the CPI
A)fails to account for consumer spending on housing.
B)accounts only for consumer spending on food, clothing, and energy.
C)fails to account for the fact that consumers spend larger percentages of their incomes on some goods and smaller percentages of their incomes on other goods.
D)fails to account for the introduction of new goods.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) does not always effectively account for the introduction of new goods. When new products enter the market, they can offer more value or different options to consumers, which the CPI might not immediately or adequately reflect, thus not fully capturing changes in the cost of living or consumer preferences.

One of the Widely Acknowledged Problems with Using the Consumer