An example of the commodity substitution bias in the calculation of the CPI is a price increase in

A) turkey when the price of chicken doesn't rise.
B) a GPS unit versus a AAA map book.
C) a 2014 Toyota Camry versus a 2005 Honda Civic.
D) etexts versus used books bought through Craigslist.
E) new homes because people's incomes have increased.


A

Economics

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Which of the following is an equilibrium condition in the ISLM model?

A) Labor demand = labor supply B) Desired investment = desired saving C) Government spending = taxation D) Money supply = income

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When we examine the U.S. money supply, the smallest component of M1 is

A) currency and coins. B) transaction deposits. C) certificates of deposit. D) traveler's checks.

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When Classical economists of the 1930s looked at the Great Depression, they:

A. thought it was a result of prices adjusting too quickly. B. suggested wages were too flexible. C. blamed it on activist fiscal and monetary policies. D. lacked a good explanation of why it was happening.

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Economic rent directs resources to

A) the people who can use them most efficiently. B) people only. C) large corporations. D) labor-intensive industries only.

Economics