One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called
a. price-change neglect.
b. unmeasured quality change.
c. substitution bias.
d. relative bias.
c
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The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called
A) game theory. B) dominant strategy equilibrium. C) the prisoner's dilemma. D) Nash equilibrium.
The monetarists emphasize the
a. importance of fiscal policy for determining GDP. b. the instability of the money supply. c. the stability of velocity. d. need to "fine tune" the level of economic activity. e. both b and c.
Costing more than the average person's yearly income, the Atlantic passage in the early seventeenth century was roughly
a. £1 b. £10 c. £100 d. £1,000
A supply curve slopes downward because of the law of supply
a. True b. False Indicate whether the statement is true or false