The Quality Adjustment Bias of the CPI Refers to the Failure

question 83

Multiple Choice

The quality adjustment bias of 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 price changes in goods and services.

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Definitions:

Gen Y'ers

Also known as Millennials, refers to the generation of people born approximately between 1981 and 1996, known for their familiarity with digital technology.

Staples

Everyday office supply products such as paper, pens, and staplers.

Office Supply Chain

The comprehensive flow of office goods and services from suppliers to consumers within an office or organizational setting.

Robots

Programmable machines capable of performing a series of complex actions automatically.