With Respect to the Consumer Price Index,which of the Following

question 25

Multiple Choice

With respect to the consumer price index,which of the following serves as an example of how the substitution bias arises? Between 2010 and 2011,the price of a pound of peanuts

• A)rises from $0.80 to $1.00 while the price of a loaf of bread rises from $2.00 to $2.50.
• B)falls from $0.90 to $0.72 while the price of a loaf of bread falls from $2.00 to $1.60.
• C)remains constant,as does the price of a loaf of bread.
• D)None of the above serves as an example of how the substitution bias arises.

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Definitions:

Embroidered

Decorated with needlework, often with colorful threads, to create designs or patterns on fabric.

Aprons

Protective garments worn to keep clothes clean during cooking or other activities.

Annual Salary

The total amount of money earned by an employee in a year, not including bonuses or other extra payments.

Direct Deposit

Payroll or other types of checks that are directly and electronically deposited into a bank account.