As the Price of Petrol Rose During the 1970s, Consumers

question 72

Multiple Choice

As the price of petrol rose during the 1970s, consumers cut back on their use of petrol relative to other consumer goods. This situation contributed to which bias in the consumer price index?

• A) Substitution bias.
• B) Transportation bias.
• C) Quality bias.
• D) Indexing bias.

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Idea Screening

The process of evaluating ideas to spot viable options, eliminating those that are less likely to succeed, before significant resources are allocated.