Changes in the Quality of a Good

question 133

Multiple Choice

Changes in the quality of a good

• A)do not present a problem in the construction of the consumer price index.
• B)present a problem in the construction of the consumer price index, and that problem is sometimes referred to as substitution bias.
• C)are not accounted for, as a matter of policy, by the Bureau of Labor Statistics.
• D)can lead to either an increase or a decrease in the value of a dollar.

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Definitions:

Sensory Modalities

Various forms of senses through which living organisms perceive the world, such as sight, sound, smell, taste, and touch.

Detecting Pain

The physiological and psychological process by which organisms recognize and respond to stimuli that are noxious and potentially harmful.

Jnd

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference.

Absolute Threshold

The minimum intensity level of a stimulus required for a person to detect its presence at least half the time.