In 1986, an Apple IIe computer with 65 kilobytes of memory cost around $1,500. Today, a $1,500 iMac computer (also made by Apple) comes with 8 gigabytes of memory. This illustrates the potential for what kind of bias in CPI calculations?

A) new product bias
B) increase in quality bias
C) substitution bias
D) outlet bias

Answer: B

Economics

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Fill in the blank(s) with the appropriate word(s).

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In the circular flow model, households demand resources such as labor services in the factor market

Indicate whether the statement is true or false

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