A recent study shows that between 2010 and 2015, the consumption of smart television sets has increased dramatically in the city of Maricary. If the consumer price index does not capture changes in the prices of these consumption goods, it will fail to reflect the actual purchases of an average consumer in this city because of the:
a. quantity bias
b. quality bias.
c. new goods bias.
d. substitution bias.
c
You might also like to view...
Goods that are produced in other countries and then sold domestically are called
A) exports. B) imports. C) tariffs. D) quotas.
Perfectly competitive firms are known for being “price makers.”
Answer the following statement true (T) or false (F)
For a simple economy (no government, no foreign sector), the condition for equilibrium can be stated correctly as
A. saving equals actual investment. B. saving equals inventory accumulation. C. saving equals planned investment. D. inventory accumulation equals planned investment.
Demand deposits are
a. deposits held by individuals at one of the twelve Federal Reserve District Banks. b. interest-earning savings deposits held by individuals at a banking institution. c. deposits of commercial banks at one of the twelve Federal Reserve District Banks. d. deposits of individuals that can either be withdrawn or made payable on demand to a third party by a check.