The CPI is biased because it

A) takes into account the changes in product quality.
B) takes into account the changes in technology.
C) does not always take into account the changes in product quality.
D) accurately measures the cost of living but not the cost of producing.
E) does not include services.

C

Economics

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Into what two effects can we divide the effect of a price change?

What will be an ideal response?

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Given the information in Figure 14.4, the bilateral monopoly wage rate is:

A) W1. B) W2. C) W3. D) W4. E) Any of the above.

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