Choose the Incorrect Statement

question 93

Multiple Choice

Choose the incorrect statement.

• A)When the quality of a good improves over time and as a result the price rises, the CPI counts the entire price rise as inflation and so overstates inflation.
• B)The outlet substitution bias injects an upward bias into the CPI.
• C)When relative prices change and people substitute to the lower priced good, the CPI ignores the substitution and the CPI overstates inflation.
• D)The CPI basket is updated monthly to allow for the introduction of new goods.
• E)All of the above statements are incorrect.

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Definitions:

Bobo Doll Experiment

A social psychology experiment conducted by Albert Bandura, demonstrating that children can learn aggressive behaviors from observing adults.

Token Reinforcement

A system of behavior modification based on the systematic reinforcement of target behavior, wherein tokens are given as rewards which can be exchanged for desired items or privileges.

Symbolically Represent

To stand for, denote, or signify something through symbols or allegories, allowing for abstract concepts to be conveyed in a understandable manner.

Retain Behavior

The process of maintaining or persevering with certain behaviors over time, often influenced by learning and experience.