Quality Changes Are

question 161

Multiple Choice

Quality changes are

• A) easily accounted for in the consumer price index (CPI).
• B) always included in the consumer price index (CPI).
• C) included in the gross domestic product (GDP)deflator but not the consumer price index (CPI).
• D) generally included in both the consumer price index (CPI)and the gross domestic product (GDP)deflator.
• E) at least partially adjusted for in the consumer price index (CPI).

Appreciate the theoretical underpinnings of supply and demand through the lens of elasticity.

Understand the concept of price elasticity of demand and how to calculate it.

Distinguish between elastic, inelastic, and unitary elasticity of demand.

Identify factors that affect the elasticity of demand for goods and services.

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Definitions:

Bay Of Pigs

The site of a failed military invasion of Cuba in 1961 by Cuban exiles backed by the U.S. government aiming to overthrow Fidel Castro.

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Bay Of Pigs

A failed military invasion of Cuba in 1961 by Cuban exiles, sponsored by the U.S. government, aiming to overthrow Fidel Castro's government.

Groupthink

An occurrence in psychology where the pursuit of agreement or adherence within a group causes choices that are irrational or counterproductive.