Which of the Following Are Considered Sources of Bias in the CPI

question 22

Multiple Choice

Which of the following are considered sources of bias in the CPI?

• A) Prices changing too rapidly;substitution,new technologies;and quality changes.
• B) Prices changing too rapidly;substitution;quality changes;and growth in discounting.
• C) Quality changes;new technologies;prices changing too rapidly;and growth in discounting.
• D) Substitution;new technologies;prices changing too rapidly;and growth in discounting.
• E) Quality changes;new technologies;substitution;and growth in discounting.

---

Definitions:

Creative Destruction

A concept in economics which suggests that new innovations destroy old industries and methods, leading to new sectors and opportunities for growth.

Start-Up Firms

Newly established businesses often characterized by innovation, growth potential, and a scalable business model.

Dominant Firms

Are companies that have a major share of the market sales, setting them apart from their competitors.

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, referring to the process in which technological progress and innovation lead to the demise of outdated industries and economic structures, making way for new ones.