In 1986,an Apple IIe Computer with 65 Kilobytes of Memory

question 144

Multiple Choice

In 1986,an Apple IIe computer with 65 kilobytes of memory cost around $1,500.Today,a $1,500 iMac computer (also made by Apple) comes with 8 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

• A)new product bias
• B)increase in quality bias
• C)substitution bias
• D)outlet bias

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Definitions:

New Products

Items or services that have been recently introduced to the market, offering new features or benefits.

Administrative Processes

Refers to the procedures and operations that contribute to the running of an organization, focusing on efficiency and effectiveness of workflows and policies.

Agency Theory

A theory explaining the relationship between principals (such as shareholders) and agents (such as company executives), focusing on the conflicts that can arise due to differing interests and information asymmetry.

Modern Organizations

Entities characterized by structured systems and practices aimed at achieving specific goals through collective efforts.