Multiple Choice
If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from
A) Consumer preference bias.
B) Substitution bias.
C) Base year bias.
D) Bias due to unmeasured quality change.
E) Bias due to the introduction of new goods.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q44: If the nominal interest rate is 12
Q45: It is impossible for real interest rates
Q46: In 2012, the CPI was 124.0 in
Q47: Inflation can be measured by all of
Q48: Which price index measures the average price
Q51: If your wage rises from €500 per
Q52: If the CPI has a value of
Q54: If the nominal interest rate is 7
Q105: Jay and Joyce meet George, the banker,
Q196: List the three major problems in using