The Increase in Quality Bias in the Consumer Price Index

question 211

Multiple Choice

The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation,but ________ quality increases.This causes the CPI to ________ the cost of the market basket.

• A)also; understate
• B)also; overstate
• C)not; understate
• D)not; overstate

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Definitions:

Business Opportunity

A commercial idea or plan that has the potential for financial gain.

Dissociated

The termination of one's involvement or association with an entity or group, often used regarding partnerships or similar entities.

Dissolution

The formal closure or termination of a corporate entity or legal relationship, such as a marriage or partnership.

Winding Up

The process of concluding a company's operations, settling its liabilities, and distributing any remaining assets to shareholders.