Which of the following is NOT a criticism of the CPI?
A) The CPI does not account for the way consumer substitute less expensive items for higher priced items.
B) The CPI ignores changes in consumption patterns that occur between years in which it revises the index.
C) The CPI ignores successful new products until long after they have been introduced.
D) The CPI ignores the changes of prices of goods that firms produce and sell to each other.

Question

Quizplus · Accepted Answer

All of the other statements are criticisms of the CPI, but the CPI does actually account for changes in prices of goods that firms produce and sell to each other through the use of producer price indexes.

Which of the Following Is NOT a Criticism of the CPI