Question

Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.Professors required each student to buy 10 textbooks, regardless of the price.The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memory cards, whereas those made in 2017 do not, but this quality change is hard to measure.A new, safe method of memory enhancement became available for purchase.

Answer 1

Answer:

A. .As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.

C. The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memory cards, whereas those made in 2017 do not, but this quality change is hard to measure.

D. A new, safe method of memory enhancement became available for purchase.

Explanation:

Option A is correct because if the price of textbook increases, it means more inflation, which will eventually lead to more cost of going to the college. Thus, in this case students will be inclined towards buying used books or not buying textbooks at all.

Similarly, in Option C it is mentioned that quality of the calculators will be higher in 2019 but that will also lead to price rise. But, during surveys emphasis would be on price rise.

Option D says that new method of memory enhancement would definitely have higher quality.