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.

---

Definitions:

Supercomputer

A highly advanced computing machine with superior processing power for complex tasks and large data computations.

Smart Phones

Mobile phones with advanced computing capabilities, often featuring internet access, applications, and a touchscreen interface.

Virtual Private Networks

Secure networks that use the internet to connect remote sites or users together, encrypting data to protect privacy.

Wide Area Networks

Telecommunications networks that extend over large geographical areas, connecting multiple smaller networks such as local area networks (LANs).