Recall Application 4, "The Introduction of Cell Phones and the Bias

question 96

Multiple Choice

Recall Application 4, "The Introduction of Cell Phones and the Bias in the CPI," to answer the following questions:
-According to the application, the failure to include cell phones in the calculation of the CPI creates an upward bias on the telecommunications component of the CPI by 0.8 to 1.9 percent. The reason for this upward bias is most likely from

• A) the decrease in the price of cell phones.
• B) the increase in the price of cell phone calls.
• C) the increase in the price of cell phones.
• D) B and C are correct.

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Definitions:

Taste Buds

Sensory organs located on the tongue that are responsible for perceiving different types of tastes.

Action Potentials

Brief electrical impulses that are the means by which information is transmitted along neurons.

Monozygotic Twins

Twins that develop from a single fertilized egg, sharing nearly 100% of their genetic material.

Dizygotic Twins

Also known as fraternal twins, these are siblings born during the same pregnancy who have developed from two separate eggs fertilized by two different sperm.