The Base Period for CPI Calculations Is Generally 1982-84

question 276

Multiple Choice

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

• A)outlet; the CPI underestimating the true change in the cost of living
• B)new product; the CPI overestimating the true change in the cost of living
• C)outlet; the CPI overestimating the true change in the cost of living
• D)net product; the CPI underestimating the true change in the cost of living

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the influence of situational factors when evaluating others' behaviors.

Good Behavior

Actions or conduct that are considered polite, respectful, and appropriate in a given social context.

Bad Behavior

Actions or conduct that are inappropriate, disruptive, or violate societal or specific set rules or norms.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the effect of situational factors when explaining others' behavior.