The Substitution Bias in the CPI Refers to the Failure

question 39

Multiple Choice

The substitution bias in the CPI refers to the failure of statisticians to:

• A)allow for the possibility that consumers switch from products whose prices are rising.
• B)allow for the possibility that consumers switch stores at which they shop.
• C)take into account improvements in goods and services.
• D)take into account new products purchased by consumers.

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Definitions:

A Bands

The dark-staining regions of a sarcomere, found in striated muscle fibers, where thick and thin filaments overlap.

Contracted Muscle

A state of muscle that is actively shortened, typically in response to a nerve impulse, facilitating movement.

Muscle Activity

The action of muscle fibers contracting and relaxing, which results in movement or the maintenance of posture.

Chemical Reactions

Processes in which one or more substances are chemically changed into one or more new substances.