Suppose the Quality of Televisions Changes Over Time,but the Quality

question 100

Multiple Choice

Suppose the quality of televisions changes over time,but the quality change goes unmeasured for the purpose of computing the consumer price index.In which of the following instances would the bias resulting from the unmeasured quality change be most severe?

• A)The quality of televisions deteriorates and televisions become more expensive relative to other goods.
• B)The quality of televisions improves and televisions become less expensive relative to other goods.
• C)The quality of televisions improves and televisions become more expensive relative to other goods.
• D)The quality of televisions deteriorates and the price of televisions relative to other prices remains unchanged.

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Definitions:

Rational System

A concept in organizational studies that views organizations as purposeful and orderly systems designed to achieve specific goals through rational planning and structured processes.

Personal Commitment

An individual's dedication and pledge to a cause, activity, or goal, often reflecting deep personal values and ethics.

PERT

Project Evaluation and Review Technique, a project management tool used to plan, schedule, and control complex tasks.

Non-Routine Projects

Projects characterized by high uncertainty, novelty, and complexity, often requiring customized approaches and flexible problem-solving strategies.