Multiple Choice
Let's say a company invents a very popular device called a Zorgon,which allows you to send small items via a transporter from one place to another.This would affect the consumer price index (CPI) in the sense that the CPI:
A) would fail to include purchases of the Zorgon for some period of time after the product entered the market.
B) would overstate the cost of the Zorgon because the price would fall over time but the CPI would always be "catching up" and be behind the price decreases.
C) would fail to take into account substitution between the Zorgon and the use of shipping services such as FedEx and UPS as the relative price of these changed.
D) would fail to take into account the quality of the Zorgon.
E) always accurately measures the cost of living.
Correct Answer:

Verified
Correct Answer:
Verified
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