Which of the following areas of bias are NOT included in the consumer price index?
A) new product bias
B) foreign production bias
C) quality improvement bias
D) substitution bias

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is designed to measure changes in the price level of a basket of consumer goods and services purchased by households. It includes biases like new product bias, quality improvement bias, and substitution bias, but it does not specifically account for foreign production bias. Foreign production bias refers to the impact of goods produced abroad on domestic price measurements, which is not a direct consideration in the calculation of the CPI.

Which of the Following Areas of Bias Are NOT Included