An Example of the Outlet Substitution Bias in the Calculation

question 137

Multiple Choice

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

• A) GPS units versus AAA map books.
• B) olive oil versus vegetable oil.
• C) a 2010 Honda Civic relative to a 2004 Honda Civic.
• D) textbooks bought through the campus bookstore relative to textbooks via Craigslist.
• E) a trip to Mexico for a couple that had previously taken vacations in Europe

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Definitions:

Privity Of Contract

A doctrine which states that contracts are binding only upon the parties who enter into them, and only these parties have the right to sue to enforce their terms.

Magnuson-Moss Warranty Act

A federal law in the United States that governs warranties on consumer products, aiming to protect consumers from deceptive warranty practices.

Statute Of Repose

A legal provision that limits the time within which an action can be brought, but unlike statutes of limitations, it is not tied to the discovery of harm but rather to the occurrence of a specific event, typically related to the completion of some act or process.

Consequential Damages

Damages that do not directly flow from an act but result as a secondary consequence, often relating to lost profits or revenue.