Identify Which of the Following Statements Is False

question 16

Multiple Choice

Identify which of the following statements is false. The "substitution bias" of the CPI:

• A)means that the CPI can either understate or overstate the actual change in cost of living faced by consumers.
• B)refers to the fact that the CPI measures the change in expenditures necessary to consume a fixed basket of goods, whereas in reality the optimal consumption basket changes as prices change.
• C)can be corrected partially by periodically updating the fixed basket of goods used in calculations.
• D)refers to the fact that those who construct the CPI are biased away from including certain types of goods in the fixed basket of goods used in their calculations.

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Definitions:

Operant Conditioning

A learning process wherein the likelihood of a behavior is increased or decreased through reinforcement or punishment.

Communication

The process of conveying meanings from one entity or group to another through the use of mutually understood signs, symbols, and semiotic rules.

Gibbon Society

The social structure and behavior of gibbons, which are small, arboreal apes known for their monogamous mating system and territorial songs.

Territory Maintenance

Behavior exhibited by animals to mark and defend their territory from intrusion by others.