Suppose the Quality of Televisions Changes Over Time,but the Quality

question 100

Multiple Choice

Suppose the quality of televisions changes over time,but the quality change goes unmeasured for the purpose of computing the consumer price index.In which of the following instances would the bias resulting from the unmeasured quality change be most severe?

• A)The quality of televisions deteriorates and televisions become more expensive relative to other goods.
• B)The quality of televisions improves and televisions become less expensive relative to other goods.
• C)The quality of televisions improves and televisions become more expensive relative to other goods.
• D)The quality of televisions deteriorates and the price of televisions relative to other prices remains unchanged.

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Definitions:

Times More Likely

A statistical expression indicating the increased likelihood of an event or condition compared to another.

Mental Health Care

Professional medical and therapeutic services aimed at maintaining or improving mental health and treating mental illnesses.

Male Inmates

Individuals identified as male who are serving time in a prison or jail.

Female Inmate Population

A demographic group referring to women who are incarcerated within a prison system.