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:

Current Flow

The movement of electric charge carriers, such as electrons, through a conductor or circuit, driven by a potential difference.

Battery Operation

Pertains to the functioning and management of a battery in providing electrical power to devices, vehicles, or systems.

Stator

The stationary windings of wire in an AC generator. Stator windings occur in two different configurations, the wye winding and the delta winding.

Windings

Coils of wire, typically copper, wound around a core or form, used in electrical machines and devices to generate magnetic fields or induce voltages.