Improvements in the Quality of Consumer Goods and Services Over

question 12

Multiple Choice

Improvements in the quality of consumer goods and services over time

• A)cause the CPI to overstate actual inflation.
• B)cause the CPI to understate actual inflation.
• C)are accounted for in the CPI.
• D)are insignificant and thus would not affect the CPI even if accounted for.

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Definitions:

Unique

Being the only one of its kind; without an equal or equivalent; distinctly characteristic.

Psychosexual Development

A theory proposed by Freud that suggests individuals go through five stages of personality development tied to sexual maturation.

Erogenous Zone

An erogenous zone is an area of the body that has heightened sensitivity and can produce sexual pleasure when stimulated.

Genitals

The reproductive organs, especially the external sex organs.