Which of the following is not a reason that the CPI overstates the cost of living?

Question

Quizplus · Accepted Answer

Frequent updates of the market basket would actually help to more accurately reflect changes in the cost of living. The other options all describe ways in which the CPI may overestimate the cost of living. Quality improvements, for example, can make goods more expensive, but also may provide increased value to consumers. Inflation measures like CPI may not fully take these changes into account. Similarly, changes in where goods and services are purchased or substitutions between goods with different price levels may not be adequately reflected in the CPI.

Which of the Following Is Not a Reason That the CPI