Substitution Bias

question 31

Multiple Choice

Substitution bias

• A) is one factor that causes the Consumer Price Index to underestimate the inflation rate
• B) is caused by the poor quality of many products
• C) is one of the primary causes of inflation
• D) involves consumer behavior that helps explain why the Consumer Price Index overestimates the inflation rate
• E) suggests most economists substitute other price indices for the flawed Consumer Price Index