One of the widely-acknowledged problems with the consumer price index (CPI) 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 CPI does not immediately account for the introduction of new goods, which can affect consumer choices and the cost of living.

One of the Widely-Acknowledged Problems with the Consumer Price Index