In 1986, an Apple IIe computer with 65 kilobytes of memory cost around $1,500. Today, a $1,500 iMac computer (also made by Apple) comes with 8 gigabytes of memory. This illustrates the potential for what kind of bias in CPI calculations?
A) new product bias
B) increase in quality bias
C) substitution bias
D) outlet bias
Answer: B
You might also like to view...
Which of the following statements about natural monopoly is correct?
A) Governments regulate natural monopolies in order to ensure that costs of production are minimized. B) Governments regulate natural monopolies in order to ensure that the firm earns a normal profit. C) Governments regulate natural monopolies in order to prevent them from making profits. D) Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.
In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold and interest rates move in the ____ direction as the change in the price level, while investment and the quantity RGDP demanded move in the ____ direction as the change in the price level
a. Same, same b. Same, opposite c. Opposite, same d. opposite, opposite
Which of the following scenarios is an example of the tragedy of the commons?
a. Extensive fishing of Bluefin Tuna in the Atlantic Ocean b. Overuse of a private swimming pool for recreation c. High demand for burgers from Burger King d. High demand for online movie streaming on Netflix
Approximately what fraction of total income in the US economy comes from labor earnings?