The Commodity Substitution Bias Is That

question 260

Multiple Choice

The commodity substitution bias is that

• A) consumers substitute high-quality goods for low-quality goods.
• B) government spending is a good substitute for investment expenditures.
• C) national saving and foreign borrowing are interchangeable.
• D) consumers decrease the quantity they buy of goods whose relative prices rise and increase the quantity of goods whose relative price falls.

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Definitions:

Flea

A small, wingless, parasitic insect that feeds on the blood of mammals and birds, known for its ability to jump long distances.

Insect

A class of arthropods with a chitinous exoskeleton, three-part body (head, thorax, abdomen), three pairs of jointed legs, compound eyes, and one pair of antennae.

Accompanying Figure

A visual representation or illustration that is provided to support or enhance textual information.

Arthropods

A phylum of invertebrate animals having an exoskeleton, a segmented body, and jointed appendages, including insects, arachnids, myriapods, and crustaceans.