Michelle Bought Word-Processing Software in 2009 for $75

question 185

Multiple Choice

Michelle bought word-processing software in 2009 for $75.Michelle's cousin,Barry,bought an upgrade of the same software in 2010 for $75.To which problem in the construction of the CPI is this situation most relevant?

• A)substitution bias
• B)unmeasured quality change
• C)introduction of new goods
• D)income bias

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Definitions:

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An increase in the production of goods and services in an economy over a period of time, usually measured by GDP.

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The part of the economy that is owned and operated by individuals and private companies, as opposed to being controlled by the government.

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A set of ethical guidelines designed to promote corporate social responsibility, originally focused on human rights and equality in the workplace.

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