Choose the Incorrect Statement

question 8

Multiple Choice

Choose the incorrect statement.

• A)The outlet substitution bias injects an upward bias into the CPI.
• B)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.
• 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 constantly updated to allow for the introduction of new goods.
• E)All of the above statements are incorrect.

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Definitions:

Neural Crest Cells

A group of embryonic cells found only in vertebrates; develop along the neural tube and migrate to various parts of the embryo where they give rise to (or influence the development of) nerves, head muscles, cranium, jaws, and other structures.

Embryonic Cells

Cells that originate from the embryo and have the potential to develop into any type of body cell, possessing high degrees of plasticity and the ability to proliferate.

Dipnoi

A group of fish also known as lungfish, characterized by their ability to breathe air using lungs in addition to gills.

Actinistia

A subclass of mostly extinct fish, with the modern coelacanths being the only living representatives, characterized by lobed fins.