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:

Valves

Structures that allow fluid (liquid or gas) to flow in one direction while preventing backflow, found in various biological and mechanical systems.

Intestinal Contents

The material, including digesting food and bacteria, contained within the intestines.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Tissues

Groups of similar cells that perform a specific function within an organism, making up organs and other parts of the body.