Substitution Bias Occurs Because the CPI Ignores the Possibility of Consumer

question 160

True/False

Substitution bias occurs because the CPI ignores the possibility of consumer substitution toward goods that have become relatively less expensive.

---

Definitions:

Moral Character

The composition of qualities, virtues, and ethical principles that define an individual's behavior and decisions as morally good or bad.

Transplant Organ

An organ removed from one person's body for the purpose of being placed (transplanted) into another person’s body to replace a damaged or missing organ.

Personal Wealth

The total value of all financial and non-financial assets owned by an individual minus any liabilities.

Organ Allocation

The process of determining how organs for transplant are distributed to patients, often based on criteria such as medical urgency, compatibility, and the recipients' time spent waiting.