The Substitution Bias in the Consumer Price Index Refers to the

question 172

Multiple Choice

The substitution bias in the consumer price index refers to the

• A)substitution by consumers toward new goods and away from old goods.
• B)substitution by consumers toward a smaller number of high-quality goods and away from a larger number of low-quality goods.
• C)substitution by consumers toward goods that have become relatively less expensive and away from goods that have become relatively more expensive.
• D)substitution of new prices for old prices in the CPI basket of goods and services from one year to the next.

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Definitions:

Defense Mechanism

A psychological strategy used unconsciously by individuals to protect themselves from anxiety or to avoid facing unacceptable thoughts or feelings.

Self-Concept

An individual's understanding and evaluation of their own abilities, traits, and characteristics; the mental image one has of oneself.

Jack Gibb

Psychologist known for his contributions to understanding group dynamics, particularly related to trust and defensiveness in communication.

Defensiveness

A psychological reaction that occurs when an individual feels threatened or anticipates a threat, leading to behaviors to protect oneself from perceived criticism or harm.