A Quality-Change Bias in the Construction of the CPI Arises

question 143

Multiple Choice

A quality-change bias in the construction of the CPI arises because:

• A) new goods and services are routinely introduced and many of them are not incorporated into the market basket that makes up the CPI.
• B) big box stores that carry electronic goods routinely run sales to reduce their inventories before stocking new models.
• C) newer versions of a product might be more expensive but could also be better than the older version.
• D) consumers also shop at superstores or outlet stores.

---

Definitions:

Psychopaths

Individuals diagnosed with a personality disorder characterized by persistent antisocial behavior, impaired empathy, and remorse.

Classically Conditioned Responses

Learned responses to previously neutral stimuli through association with stimuli that naturally evoke responses.

Anticipated Danger

The expectation or prediction of harm, threat, or risk, leading to caution or preventive actions.

Ruminating

The act of continuously thinking about the same thoughts, often negative, which can interfere with problem-solving and lead to emotional distress.