The Commodity Substitution Bias Is That

question 105

Multiple Choice

The commodity substitution bias is that

• A)government spending is a good substitute for investment expenditures.
• B)national saving and foreign borrowing are interchangeable.
• C)consumers substitute more expensive goods for less expensive goods when technology advances.
• D)consumers substitute high- quality goods for low- quality goods.
• E)consumers decrease the quantity they buy of goods whose relative prices rise and increase the quantity of goods whose relative price falls.

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Definitions:

Social Atomization

The breakdown of social bonds between an individual and their community or society, leading to isolation and fragmentation of social life.

Chris McCandless

An American hiker and adventurer best known for his travels to Alaska and the circumstances of his death, which were documented in the book “Into the Wild.”

Wilderness

Undeveloped land that has not been significantly modified by human activity, often preserved for its natural condition.

Maritime Commerce

The exchange of goods and services conducted via sea, involving the transportation and trade of commodities across international waters.