MCQOPTIONS
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| 1. |
If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ? |
| A. | none of these answers |
| B. | substitution bias |
| C. | base year bias |
| D. | bias due to unmeasured quality change |
| E. | bias due to the introduction of new goods. |
| Answer» C. base year bias | |