What Does "Substitution Bias" in the Consumer Price Index Refer

question 128

Multiple Choice

What does "substitution bias" in the consumer price index refer to?

• A) replacing old goods with new goods in consumer purchases
• B) replacing low-quality goods with high-quality goods in consumer purchases
• C) replacing expensive goods with cheaper goods in consumer purchases
• D) replacing old technology goods with new technology goods in consumer purchases

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Definitions:

Rescind

To withdraw, negate, or overturn a law, order, or agreement.

Asserted

Stated with confidence or declared strongly, typically without providing evidence or proof.

Concealment

The act of hiding or withholding information or facts intentionally.

Nondisclosure

Refers to the act of not sharing certain information that is usually confidential or proprietary.