A problem with the CPI is that it measures the price changes of only food and clothing,while ignoring what happens to the prices of such important items as medical care and energy.
Level of Learning 2: Understanding of concepts and principles

Question

Quizplus · Accepted Answer

This statement is incorrect. The CPI measures the price changes of a broader range of goods and services, including medical care and energy, along with other items such as housing, transportation, and education.

A Problem with the CPI Is That It Measures the Price