Suppose That the Prices of Dairy Products Have Risen Relatively

question 139

Multiple Choice

Suppose that the prices of dairy products have risen relatively less than prices in general over the last several years.To which problem in the construction of the CPI is this situation most relevant?

• A)substitution bias
• B)introduction of new goods
• C)unmeasured quality change
• D)income bias

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Definitions:

Cue

A signal or prompt that influences a person's behavior or actions.

Drive

The motivation or inherent force that pushes an individual or business towards reaching a certain goal.

Stimulus Generalization

A psychological phenomenon where a response to a specific stimulus becomes associated with similar stimuli, leading to a similar response without explicit training.

Selective Comprehension

The process by which consumers interpret information in a way that aligns with their beliefs, values, or needs, often leading to biased understanding.