Which of the following is not a widely acknowledged problem with the CPI as a measure of the cost of living?

Question

Quizplus · Accepted Answer

Unmeasured price change is not a widely acknowledged problem with the CPI. The other three options all represent acknowledged problems with the CPI. Substitution bias occurs when consumers switch to cheaper goods when the price of their regular choice increases; the CPI assumes consumers continue to purchase the same basket of goods regardless of price changes. Introduction of new goods is not always accurately accounted for by the CPI, which may not reflect the price drops associated with new goods. Unmeasured quality change occurs when the quality of a good changes, but the price remains the same; the CPI does not account for this change in quality.

Which of the Following Is Not a Widely Acknowledged Problem