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:

Multiple-Step Income Statement

A multiple-step income statement is a detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income in several steps or segments.

Other Revenue

Revenue from sources other than the primary operating activity of a business.

FOB Shipping Point

A term used in shipping indicating that the buyer assumes responsibility for the goods and their transportation costs as soon as the goods leave the seller's location.

Freight Costs

Charges associated with the transportation of goods from one location to another, often considered part of inventory costs in accounting.