An Example of the New Goods Bias in the CPI

question 302

Multiple Choice

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

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

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Definitions:

Political Correctness

The avoidance of expressions or actions that can exclude, marginalize, or insult groups of people traditionally discriminated against.

Marginalized Groups

Populations or communities that are excluded, disadvantaged, or relegated to the fringe of society based on a variety of factors like race, gender, economic status, or sexuality.

Busing System

A method of transportation that uses buses to move people from one place to another, often used in the context of desegregating schools by transporting students to schools outside their neighborhoods.

Economic Difficulties

Situations characterized by financial challenges, such as high unemployment rates, inflation, and poverty.