Identify Which of the Following Statements Is False

question 16

Multiple Choice

Identify which of the following statements is false. The "substitution bias" of the CPI:

• A)means that the CPI can either understate or overstate the actual change in cost of living faced by consumers.
• B)refers to the fact that the CPI measures the change in expenditures necessary to consume a fixed basket of goods, whereas in reality the optimal consumption basket changes as prices change.
• C)can be corrected partially by periodically updating the fixed basket of goods used in calculations.
• D)refers to the fact that those who construct the CPI are biased away from including certain types of goods in the fixed basket of goods used in their calculations.

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Definitions:

Polyandry

A marriage form in which a woman is married to two or more men at one time; a form of polygamy.

Kinship Chart

A visual representation used in anthropology and social sciences to display family relationships and lineage connections among members of a society.

Absolute Forbiddance

The strict prohibition or banning of certain actions, behaviors, or substances without exceptions.

Preferred Form

The most accepted or favored version or configuration of something, often reflecting cultural, aesthetic, or functional superiority.