An example of the new goods bias in the CPI is the
A. introduction of higher quality brakes as standard equipment on new cars.
B. introduction of hybrid automobiles, vehicles that were not made until recently.
C. decreasing popularity of SUVs as the price of gasoline has risen.
D. switch from traditional car dealerships to low-cost Internet car buying services.
Answer:B
An example of the new goods bias in the CPI is the
A. introduction of higher quality brakes as standard equipment on new cars. B. introduction of hybrid automobiles, vehicles that were not made until recently. C. decreasing popularity of SUVs as the price of gasoline has risen. D. switch from traditional car dealerships to low-cost Internet car buying services.