Choose the incorrect statement.
A) When the quality of a good improves over time and as a result the price rises, the CPI counts the entire
price rise as inflation and so overstates inflation.
B) The outlet substitution bias injects an upward bias into the CPI.
C) The CPI basket is constantly updated to allow for the introduction of new goods.
D) When relative prices change and people substitute to the lower priced good, the CPI ignores the
substitution and the CPI overstates inflation.
E) All of the above statements are incorrect.
C) The CPI basket is constantly updated to allow for the introduction of new goods.
C) The CPI basket is constantly updated to allow for the introduction of new goods.
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The model predicting victory in a two-person race for the candidate closer to occupying the center of the voter distribution is built on the assumption that
A) people always vote for the Democratic candidate if they are Democrats and for the Republican candidate if they are Republicans. B) people vote for the candidate who comes closer to matching their own views. C) most people don't vote unless the election is predicted to be close. D) none of the above
The provision of the Patient Protection and Affordable Care Act (ACA) which states that insurance companies are required to participate in a high-risk pool that will insure individuals with pre-existing medical conditions who have been unable to buy
health insurance for at least six months is the ________ provision. A) employer mandate B) state health insurance marketplaces C) individual mandate D) regulation of health insurance