The Innovation That Turned the Hand Loom into a Power

question 68

Multiple Choice

The innovation that turned the hand loom into a power loom, the horse-drawn carriage into the steam engine, and the blacksmith's hammer into a power machine is

• A)capitalism.
• B)domestication.
• C)mechanisation.
• D)the computer chip.

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Definitions:

Laspeyres Index

A price index used to measure the change in the cost of acquiring a fixed basket of goods and services of the same type and quantity over time.

Paasche Index

A price index that measures the cost of purchasing a given market basket of goods and services in a certain year, compared to the cost of purchasing the same goods and services in a base year, with the quantities used in weighting the prices coming from the year of interest rather than the base year.

Ideal Cost-Of-Living Index

A theoretical measure that tracks the changes in the amount required to maintain a constant standard of living over a period.

Ideal Cost-Of-Living Index

A theoretical measure representing the change in the amount of money needed to maintain a certain standard of living.