To Which of the Problems in the Construction of the CPI

question 78

Multiple Choice

To which of the problems in the construction of the CPI is the creation of the mobile phone most relevant?

• A)substitution bias
• B)introduction of new goods
• C)unmeasured quality change
• D)income bias

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Definitions:

New Prosperity

A period or condition in which an economy experiences growth, leading to increased wealth, employment, and an improved standard of living for its population.

International Economy

The interconnected system of global trade and finance that facilitates the exchange of goods, services, and capital across borders.

High Tariff Barriers

High tariff barriers are elevated taxes imposed on imported goods to protect domestic industries from foreign competition.

Higher Education

Educational programs beyond secondary school, including universities, colleges, and vocational schools, often leading to degrees or other qualifications.