The Introduction of the Video Cassette Recorder in the 1970s

question 26

Multiple Choice

The introduction of the video cassette recorder in the 1970s exemplified a problem in measuring the cost of living; that problem is the problem of

• A)substitution bias.
• B)product-improvement bias.
• C)introduction of new goods.
• D)unmeasured quality change.

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Definitions:

Equilibrium Value

The price or value at which the quantity supplied is equal to the quantity demanded in a market.

Marginal Productivity

The increase in output resulting from a one-unit increase in the input, holding all other inputs constant.

Income Distribution

The way in which total income is shared among the population or different groups within the society.

Equilibrium Value

The price and quantity at which the supply and demand for a good or service balance each other out.