An Example of the New Goods Bias in the CPI

question 96

Multiple Choice

An example of the new goods bias in the CPI is the

• A)switch from traditional car dealerships to low- cost Internet car buying services.
• B)decreasing popularity of SUVs as the price of fuel has risen.
• C)introduction of hybrid automobiles, vehicles that were not made until recently.
• D)introduction of higher quality brakes as standard equipment on new cars.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed or heard directly, a critical cognitive development milestone in infants.

Cognitive Theorists

Scholars and researchers who study mental processes such as perception, memory, decision-making, and problem-solving.

Language Acquisition Device

A theoretical construct proposed by Noam Chomsky suggesting an innate mechanism or mental capacity that enables infants to acquire and produce language.

Socially Patterned Activities

Activities that are structured and influenced by societal norms and cultural practices.