Answer to Question #170774 in Microeconomics for Alex

Question

Understanding the cost of living concept may be challenging because we do not often compare to different geographic locations and/or increases and decreases over the years.

Answer 1

True

In most of the countries, the cost of living is measured mostly in develop towns and the interior parts of the country/state left aside, making the cost of living inaccurate since a lot of geographical areas have been left out. Hence it becomes hard to determine where life is expensive and where life is cheap to live in.