Q25. The country of Zanzibar has experienced a halt in its technological growth and innovation over a protracted period. Which CPI bias problem is likely to persist in this scenario?

a.income bias

b.substitution bias

c.new goods bias

d.quality improvement bias

Q26. With a Consumer Price Index of 179.8 at the end of last year and 186.5 at the end of this year, the country experienced which of the following?

a.An inflation rate of 3.72 percent.

b.A deflation rate of 3.59 percent.

c.A deflation rate of 3.72 percent.

d.An inflation rate of 3.59 percent.

Q27. Of the following inflation rates, which ismostlikely to affect consumer behavior?

a.6%

b.17%

c.2.0%

d.1.0%

Q28. Fluctuations in the unemployment rates over the past 50 years can best be explained by

a.worker productivity.

b.growth and contraction of the labor force.

c.cycles of economic expansions and recessions.