An Example of the Commodity Substitution Bias in the Calculation

question 124

Multiple Choice

An example of the commodity substitution bias in the calculation of the CPI is a price increase in

• A)new homes because people's incomes have increased.
• B)e-books versus used books bought through the university bookshop.
• C)a GPS unit versus a Melways map book.
• D)a 2014 Toyota Camry versus a 2005 Honda Civic.
• E)turkey when the price of chicken doesn't rise.

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Definitions:

Sodium Amobarbital

A barbiturate derivative with sedative and hypnotic properties used in a clinical setting, often for purposes such as reducing anxiety or inducing sleep.

Sodium Pentobarbital

A barbiturate drug used primarily as a sedative, anesthetic, or to induce sleep.

Dissociative Amnesia

A psychological condition characterized by memory loss that is too significant to be explained by ordinary forgetfulness.

Dissociative Identity Disorder

A psychological condition where a person experiences two or more distinct identities or personality states, each with its own pattern of perceiving and interacting with the world.