If a New and Better Good Replaced an Older and Less

question 113

Multiple Choice

If a new and better good replaced an older and less expensive good, then the price level measured by the CPI ________.

• A)might be either higher or lower than the actual price level
• B)is the same as the actual price level because it measures the prices of the actual goods.
• C)is higher than the actual price level
• D)is lower than the actual price level

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Definitions:

Free Trade

An economic strategy permitting the free movement of goods in and out of countries without the imposition of tariffs, quotas, or any form of restrictions.

Virtues

Qualities or traits that are deemed to be morally good and thus is valued as a foundation of good moral being.

Infant-Industry Argument

A justification for protectionist policies that asserts new industries need to be shielded from international competition until they are mature and competitive enough.

Implementation

refers to the process of executing a plan, project, or method to completion.