The substitution of one good for another by consumers:
A. is not captured by the CPI.
B. is captured by the CPI.
C. due to price changes is captured by the CPI.
D. due to changes in tastes/preferences is captured by the CPI.
Answer: A
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The Smithsonian Agreement of 1971 was hailed by President Nixon as a fundamental reorganization of the international monetary system. In fact, what it accomplished was
A) the revaluation of the dollar. B) the devaluation of the dollar. C) an increase of the gold content of the dollar. D) the elimination of gold backing for the dollar.
For direct price discrimination to work,
a. The firm need not be able to identify members of the low-value group b. The firm must charge a single price to all its customers c. The firm need not worry about any arbitrage since all its customers are charged the same price d. None of the above