Suppose Prices of Personal Computers Fall Significantly and Consumers Respond

question 163

Multiple Choice

Suppose prices of personal computers fall significantly and consumers respond by buying more personal computers.The consumer price index

• A)reflects this price decrease accurately.
• B)understates this price decrease due to the substitution bias.
• C)overstates this price decrease due to the income bias.
• D)overstates this price decrease due to the substitution bias.

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Definitions:

French union federations

Umbrella organizations that represent various labor unions in France, coordinating activities among different sectors and advocating for workers' rights at the national level.

Business unionism

A model of labor unions focusing primarily on improving pay, benefits, and working conditions, rather than broader social or political change.

Philosophy

A system of beliefs or ideas concerning the nature of existence, knowledge, values, reason, mind, and the universe.

German works council

Employee representative bodies in Germany that work with employers to discuss and resolve workplace issues, distinct from trade unions but also focusing on workers' rights.