When economists speak of the CPI bias, they are referring to
A) the tendency for the CPI to overstate price changes.
B) the tendency for the CPI to understate price changes.
C) the tendency for the CPI to understate inflation.
D) errors in measuring the prices used in the CPI.
E) the tendency for government officials to impose their values on the data.
A
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Economic regulation of business is justified if, by intervening, government can
a. improve the allocation of resources in society b. create economic rents for special interest groups c. reduce output and increase prices for an industry d. increase tax revenue from the regulated industry e. force firms to increase their costs of production
A PPF can be used to illustrate:
(a) Producer Profit; (b) Opportunity Cost; (c) Market Equilibrium; (d) None of the above.