An Example of the Quality Change Bias,and Not a New

question 123

Multiple Choice

An example of the quality change bias,and not a new goods bias,in the calculation of the CPI is a price increase in

• A)Coke versus Pepsi.
• B)DVDs purchased on Craigslist,an online classified website.
• C)a 2013 GPS unit versus a 2008 GPS unit.
• D)etexts versus used books .
• E)pants purchased by a first-time shopper at Aeropostale.

---

Definitions:

New Government

The establishment of a new system of political authority, often following a revolution, reform, or major political change within a country.

First Continental Congress

A gathering of delegates from twelve of the Thirteen Colonies in 1774, which met to address grievances against British policies and to organize colonial resistance.

King George III

The monarch of Great Britain and Ireland during the late 18th century, notably during the American Revolutionary War.

Petition

A petition is a formal written request, often signed by many people, appealing to authority in respect of a particular cause.