Suppose the Quality of Televisions Changes Over Time,but the Quality

question 100

Multiple Choice

Suppose the quality of televisions changes over time,but the quality change goes unmeasured for the purpose of computing the consumer price index.In which of the following instances would the bias resulting from the unmeasured quality change be most severe?

• A)The quality of televisions deteriorates and televisions become more expensive relative to other goods.
• B)The quality of televisions improves and televisions become less expensive relative to other goods.
• C)The quality of televisions improves and televisions become more expensive relative to other goods.
• D)The quality of televisions deteriorates and the price of televisions relative to other prices remains unchanged.

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Definitions:

Unreasonable Search

A search conducted by authorities without a valid warrant or justification, infringing on an individual's privacy rights.

Democratic Right

Rights that allow individuals to participate in the democratic process, including the right to vote and stand for election.

Freedom of Expression

The right to express one's ideas and opinions freely through speech, writing, and other forms of communication without fear of censorship or retaliation.

Ultra Vires

Acts or decisions made beyond the scope of power granted by a corporation's charter or by law.