Suppose higher prices lead consumers to switch from shopping at Abercrombie & Fitch to shopping at Wal-Mart. If the CPI does not reflect this change, it is referred to as
A) a new goods bias.
B) a quality change bias.
C) an outlet substitution bias.
D) a new price bias.
E) store bias.
C
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Mention the factors which have helped South Africa's electricity supplier, Eskom, to reduce transaction costs and distribute electricity cheaply?
The market price for wallets is $20 . Your technology is such that at your most efficient production point, the average total cost of producing a wallet is $2.50 . Your manager runs into your office and shouts, "Boss! Average costs are rising! Average costs are rising!" To make a profit-maximizing decision, you should
a. definitely decrease production b. immediately stop production c. completely ignore your manager d. ask the manager about the marginal cost e. ask the manager about the average total cost
The _________________ the opportunity cost of bad behavior, the _________________ likely one is to exhibit bad behavior
A) higher; less B) lower; more C) higher; more D) lower; less E) a and b
Ideally, an important aspect of a democracy is an ______.
a. informed electorate b. electorate that trusts authority figures c. equal distribution of resources d. obvious distinction among classes