The Increase in Quality Bias in the Consumer Price Index

question 211

Multiple Choice

The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation,but ________ quality increases.This causes the CPI to ________ the cost of the market basket.

• A)also; understate
• B)also; overstate
• C)not; understate
• D)not; overstate

---

Definitions:

Avoiding Stressor

The act of staying away from or preventing oneself from being exposed to situations that cause stress.

Learned Helplessness

The condition of experiencing an intense lack of control, typically resulting from a traumatic incident or persistent unsuccessful efforts.

Aversive Events

Unpleasant or harmful events or stimuli that an organism seeks to avoid or minimize.

Passive Resignation

A state of accepting or submitting without resistance, often characterized by lack of action or initiative.