Suppose the Quality of Lawn Mowers,which Are Part of the CPI

question 22

Multiple Choice

Suppose the quality of lawn mowers,which are part of the CPI basket,has improved,while their price has remained the same.If Statistics Canada wants to adjust the CPI so that the effect of better quality on the cost of living is accounted for,what should Statistics Canada do?

• A) It should keep the CPI unchanged,because the price has not changed.
• B) It should decrease the CPI,because better quality means lower maintenance costs.
• C) It should increase the CPI,because higher quality means higher value.
• D) It should keep the CPI unchanged,because lower maintenance costs are offset by higher value.

Grasp the concept of the circular-flow diagram and its components.

Recognize the significance of the production possibilities frontier (PPF) and its implications.

Comprehend the assumptions made when constructing economic models.

Learn about the effects of technological advances on production possibilities.

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Definitions:

Software

Programs and other operating information used by a computer to perform specific tasks.

Upper CASE Tools

Tools that are used to automate the early stages of the SDLC (systems investigation, analysis, and design).

SDLC

The Software Development Life Cycle (SDLC) is a framework defining tasks performed at each step in the software development process.

Lower CASE Tools

Tools used to automate later stages in the SDLC (programming, testing, operation, and maintenance).