The Base Period for CPI Calculations Is Generally 1982-84

question 24

Multiple Choice

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

• A)outlet bias; the CPI underestimating the true change in the cost of living
• B)new product; the CPI overestimating the true change in the cost of living
• C)outlet bias; the CPI overestimating the true change in the cost of living
• D)net product; the CPI underestimating the true change in the cost of living

---

Definitions:

Tandem Drive

A drive configuration in vehicles where two or more axles are powered, commonly found in heavy vehicles for improved traction and load distribution.

Heavy Duty Truck

A truck designed to carry large heavy loads or perform other heavy-duty tasks, typically having a high durability and power capacity.

Truck Differential

A mechanical component in trucks that allows the wheels to rotate at different speeds, crucial for cornering.

Carrier Housing

The outer case or structure that encloses the differential gears and bearings in a vehicle, supporting and protecting the differential assembly.