When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars. The fact that the CPI does not fully account for such changes in consumer behavior is called
A) increase in quality bias. B) outlet bias.
C) substitution bias. D) discrimination bias.
C
You might also like to view...
What is the primary reason for the differences between the U.S. banking system and those in other major industrial countries?
A) Economies of scale are greater in banking in the United States than in banking in other countries. B) legislation that led to the development of state and national banks C) the Federal Reserve System D) the National Bank
If a senior manager wishes to see her proposal win support, then she should:
A. likely to design a proposal that can be modified easily. B. design a proposal that will yield high returns if successful. C. wait for the CEO to change the organizational architecture. D. wait for the senior management to ask for her proposal.