Economic Theory

posted by .

If the Consumer Price Index is imperfect, why do we use it?

  • Economic Theory -

    This article will explain how it works.
    It will also explain why it is not exact and why it can not be exact. There are other price indices, but none of them are "perfect", essentially for the same reasons.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    As price falls along the elastic portion of a linear demand curve, _______ decrease while _______ increase. Answers. A. only price; quantity demanded , consumer surplus, and consumer expenditures B. consumer surplus and price; quantity …
  2. Economics

    What is the formula for CPI consumer price index?
  3. Economic DQ's

    3. You have been hired by the government as an economic statistician and given the job of calculating the CPI (the chili price index, not the consumer price index). According to the government's official recipe, the ingredients for …
  4. Economic Theory

    What are characteristics of the strengths of the Consumer Price Index?
  5. Economic Theory

    What are the characteristics of the strengths of the Consumer Price Index?
  6. algebra

    2. Examine the rise in gasoline prices from 1997 to 2006. The price of regular unleaded gasoline in January 1997 was $1.26, and in January 2006, the price of regular unleaded gasoline was $2.31 (“Consumer price index,” 2006). Use …
  7. Algebra I

    1. Imagine you are at a gas station filling your tank with gas. The function C(g) represents the cost C of filling up the gas tank with g gallons. Given the equation a. What does the number 3.03 represent?
  8. Economics

    1. You read the following information about the economy: Real GDP up three percent from a year ago. Unemployment rate of 6.1 percent. Consumer Price Index up six percent from a year ago. Index of Leading Indicators up for the last …
  9. Economics

    The index most widely used by the government and the private sector to measure changes in the cost of living is the (a) the GDP deflator, (b) Producer Price Index, (c) The interest rate, (d) Consumer Price Index
  10. government

    what is the consumer price index?

More Similar Questions