The Technique Currently Used to Calculate the CPI Implicitly Assumes

question 209

Multiple Choice

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

• A) goods and services whose quality improves at the rate of growth of real income.
• B) relatively more of goods whose relative prices are rising.
• C) relatively less of goods whose relative prices are rising.
• D) the same relative quantities of goods as in a base year.

---

Definitions:

Nature-Nurture Debate

The ongoing discussion regarding the relative contributions of genetic inheritance and environmental factors to human development.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Personality Traits

Enduring characteristics and behaviors that define an individual's patterns of thinking, feeling, and acting.

Differential Susceptibility

A concept in psychology that suggests that people differ in their sensitivity to environmental influences, for better or worse.