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:

Treble Damages

A legal principle allowing a court to triple the amount of the actual/compensatory damages to be awarded to a plaintiff.

Four-Firm Concentration

A measure of market concentration that evaluates the total market share of the four largest firms within an industry.

Standard Oil Case

A 1911 antitrust case in which Standard Oil was found guilty of violating the Sherman Act by illegally monopolizing the petroleum industry. As a remedy the company was divided into several competing firms.

Microsoft Case

A 2002 antitrust case in which Microsoft was found guilty of violating the Sherman Act by engaging in a series of unlawful activities designed to maintain its monopoly in operating systems for personal computers; as a remedy the company was prohibited from engaging in a set of specific anticompetitive business practices.