As the Price of Gasoline Rose During the 1970s, Consumers

question 86

Multiple Choice

As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?

• A) Substitution bias.
• B) Transportation bias.
• C) Quality bias.
• D) Indexing bias.

---

Definitions:

Categorical

Pertaining to categorization or the division of something into distinct categories.

Quantity Words

Words that express amounts of items or describe the extent of something, such as "many," "few," "several," etc.

Hypothetical Conclusion

A conclusion that is based on a conditional statement, depending largely on a "if-then" scenario.

Fallacy

A fault in logical judgment that causes an argument to be invalid or not based on sound reasoning.