With Respect to the Consumer Price Index,which of the Following

question 25

Multiple Choice

With respect to the consumer price index,which of the following serves as an example of how the substitution bias arises? Between 2010 and 2011,the price of a pound of peanuts

• A)rises from $0.80 to $1.00 while the price of a loaf of bread rises from $2.00 to $2.50.
• B)falls from $0.90 to $0.72 while the price of a loaf of bread falls from $2.00 to $1.60.
• C)remains constant,as does the price of a loaf of bread.
• D)None of the above serves as an example of how the substitution bias arises.

---

Definitions:

Collective Action

involves a coordinated group effort to achieve a common objective, often in the context of social or political issues.

Unionization

The process of organizing the employees of a company or sector into a union to collectively negotiate for better wages, working conditions, and other employment benefits.

Working-Class Power

The ability or potential of working-class individuals to collectively influence societal, economic, and political structures in their favor, often through unions, strikes, and other forms of collective action.

Political Behaviour

Political behaviour refers to the actions and attitudes of individuals and groups regarding politics, including voting, party affiliation, and civic participation.