In 1986, an Apple IIe Computer with 65 Kilobytes of Memory

question 130

Multiple Choice

In 1986, an Apple IIe computer with 65 kilobytes of memory cost around $1,500.Today, a $1,500 Apple Macbook Pro computer comes with 4 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

• A)new product bias
• B)increase in quality bias
• C)substitution bias
• D)outlet bias
• E)moore's law bias

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Definitions:

Estimated Cost

A forecast or approximation of the expenses associated with a project, product, or service.

Goods Sold

The total number of products or services that a company sells during a specific period.

Cash Balance

The amount of cash held by a company at a given point in time.

Minimum Cash Balance

The lowest amount of cash that a company aims to hold in its bank accounts at any time to meet routine operational expenses.