Commodity Substitution Bias in the CPI Refers to the Fact

question 83

Multiple Choice

Commodity substitution bias in the CPI refers to the fact that the CPI

• A)takes into account the substitution of goods by consumers when relative prices change.
• B)takes no account of the substitution of goods by consumers when relative prices change.
• C)substitutes quality changes whenever they occur without taking account of the cost of the quality changes.
• D)substitutes relative prices for absolute prices of goods.
• E)accounts for improved quality in price rises.

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Definitions:

Ethical Climate

A work environment's set of moral values, practices, and beliefs that guide behavior and decisions within an organization.

Whistleblower

An employee who discloses organizational wrongdoing to parties who can take action.

Virtuous Circle

The idea that corporate social performance and corporate financial performance feed and reinforce each other.

Corporate Profits

The surplus income of a company after all expenses have been deducted from revenues, indicating the financial health and earning power of the business.