Question : 161.WhichofthefollowingisnotawidelyacknowledgedproblemwithusingtheCPIasameasureofthecostofliving? a.substitutionbias b.introductionofnewgoods c.unmeasuredqualitychange : 1261692
161.WhichofthefollowingisnotawidelyacknowledgedproblemwithusingtheCPIasameasureofthecostofliving? a.substitutionbias b.introductionofnewgoods c.unmeasuredqualitychange d.unmeasuredpricechange 162.Thethreeproblemswithusingtheconsumerpriceindexasameasureofthecostoflivingare a.widelyacknowledgedandeasytosolve. b.widelyacknowledgedanddifficulttosolve. c.nearlyunacknowledgedandeasytosolve. d.nearlyunacknowledgedanddifficulttosolve. 163.Whentherelativepriceofagoodincreases,consumersrespondbybuying a.alargerquantityofthatgoodandalargerquantityofsubstitutesforthatgood. b.alargerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood. c.asmallerquantityofthatgoodandalargerquantityofsubstitutesforthatgood. d.asmallerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood. 164.Whentherelativepriceofagooddecreases,consumersrespondbybuying a.alargerquantityofthatgoodandalargerquantityofsubstitutesforthatgood. b.alargerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood. c.asmallerquantityofthatgoodandalargerquantityofsubstitutesforthatgood. d.asmallerquantityofthatgoodandasmallerquantityofsubstitutesforthatgood. 165.Supposethepriceofaquartofmilkrisesfrom$1.00to$1.20andthepriceofaT-shirtrisesfrom$8.00to$9.60.IftheCPIrisesfrom150to195,thenpeoplelikelywillbuy a.moremilkandmoreT-shirts. b.moremilkandfewerT-shirts. c.lessmilkandmoreT-shirts. d.lessmilkandfewerT-shirts. 166.Supposethepriceofagallonoficecreamrisesfrom$4to$5andthepriceofacanofcoffeerisesfrom$2to$2.50.IftheCPIrisesfrom150to 177,thenpeoplelikelywillbuy a.moreicecreamandmorecoffee. b.moreicecreamandlesscoffee. c.lessicecreamandmorecoffee. d.lessicecreamandlesscoffee. 167.Supposethepriceofasix-packofcolarisesfrom$3to$3.75andthepriceofapackofmintsrisesfrom$1.25to$1.75.IftheCPIrisesfrom140to 182,thenpeoplelikelywillbuy a.morecolaandmoremints. b.morecolaandfewermints. c.lesscolaandmoremints. d.lesscolaandfewermints. 168.Supposethepriceforonegallonofgasolinerisesfrom$3.50to$4.00andthepriceofonegallonofmilkrisesfrom$3.00to$3.20.If theCPIrisesfrom 120to132, thenpeoplelikely willbuy a.moregasolineandmoremilk. b.moregasolineandfewermilk. c.lessgasolineandmoremilk. d.lessgasolineandfewermilk. 169.Oneproblemwiththeconsumerpriceindexstemsfromthefactthat,overtime,consumerstendtobuylargerquantitiesofgoodsthathavebecomerelativelylessexpensiveandsmallerquantitiesofgoodsthathavebecomerelativelymoreexpensive.Thisproblemiscalled a.price-changeneglect. b.unmeasuredqualitychange. c.substitutionbias. d.relativebias. 170.Thesubstitutionbiasintheconsumerpriceindexreferstothe a.substitutionbyconsumerstowardnewgoodsandawayfromoldgoods. b.substitutionbyconsumerstowardasmallernumberofhigh-qualitygoodsandawayfromalargernumberoflow-qualitygoods. c.substitutionbyconsumerstowardgoodsthathavebecomerelativelylessexpensiveandawayfromgoodsthathavebecomerelativelymoreexpensive. d.substitutionofnewpricesforoldpricesintheCPIbasketofgoodsandservicesfromoneyeartothenext.