The three problems with using the consumer price index as a measure of the cost of living are
A)widely acknowledged and easy to solve.
B)widely acknowledged and difficult to solve.
C)nearly unacknowledged and easy to solve.
D)nearly unacknowledged and difficult to solve.

Question

Quizplus · Accepted Answer

The three problems with using the consumer price index as a measure of the cost of living are widely acknowledged but difficult to solve. These problems include the substitution bias, the introduction of new goods, and changes in quality. These factors make it difficult to accurately reflect the true cost of living using just the CPI.

The Three Problems with Using the Consumer Price Index as a Measure