The cpi overstates inflation because the average consumer buys the same basket of goods every week. more of those goods whose relative price has risen. less of those goods whose relative price has risen. lower quality goods if they have a choice. a generally random assortment of goods and services each week because what is purchased depends on what the consumer needs.

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.