The Substitution Bias in the Construction of the CPI Arises

question 94

Multiple Choice

The substitution bias in the construction of the CPI arises because:

• A) consumers alter their buying habits as new products come into being and lifestyles change.
• B) technological changes have led to improvements in quality and lower production costs over time.
• C) consumers alter the goods they buy, switching from relatively high priced goods toward lower-priced alternatives.
• D) consumers shop at both high-priced department stores and lower-priced discount stores.

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Definitions:

Older Adult

An individual who has reached an advanced stage of life, typically characterized by retirement age or senior citizen status.

Respiratory Rate

The number of breaths a person takes per minute, which is a vital sign used to assess respiratory function.

Narcotic Analgesic

A class of medications that are used to provide relief from severe pain by acting on the central nervous system.

Hypothermic

Pertaining to or suffering from hypothermia, a condition where the body's core temperature falls below the required temperature for normal metabolism and body functions.