The Consumer Price Index Is Subject to Substitution Bias Because

question 194

Multiple Choice

The consumer price index is subject to substitution bias because

• A)some pairs of goods are complements rather than substitutes.
• B)some goods are inferior rather than normal.
• C)the law of demand applies to most,if not all,goods.
• D)the index does not take into account the likelihood that consumers substitute newly-introduced goods for more-established goods.

---

Definitions:

Treatment

Medical care and management provided to a patient for the purpose of managing or curing a disease, disorder, or injury.

Problem Drinking

A pattern of alcohol consumption that causes health problems, distress, or difficulty in daily functioning.

Psychosocial Interventions

Treatments that focus on both psychological and social factors to help individuals with mental health issues or to prevent such problems.

Detoxification

The physiological or medicinal removal of toxic substances from a living organism, including the human body, which is mainly carried out by the liver.