Recall Application 4, "The Introduction of Cell Phones and the Bias in the CPI," to answer the following questions:
-Why were cellphones not included in the CPI basket immediately after it was introduced?
A) Only one kind of phone can be included in the CPI basket, and in 1983, they were the landline phones.
B) The cell phones were all made in Japan, so they were not included in GDP.
C) Most American families did not have cell phones when they were first introduced.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Cell phones were not included in the CPI basket immediately after their introduction because most American families did not have them at that time, making them not representative of typical consumer spending.