All of these statements are true. The ICP index uses a broad market basket to represent the full cost of living across countries, but cultural and geographical differences can make this an imperfect measure. For instance, different cultures may value different goods and services, and different geographical areas have varying costs of living.

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The ICP Index

Question 106

Multiple Choice

The ICP index:

A) uses a broad market basket that tries to represent the full cost of living across countries.
B) is an imperfect measure because of cultural differences.
C) is an imperfect measure because of typical weather and geographical differences.
D) All of these are true.

Correct Answer: