The Technique Used to Calculate the CPI Implicitly Assumes That

question 70

Multiple Choice

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

• A)relatively more of goods with relative prices that are increasing.
• B)relatively less of goods with relative prices that are decreasing.
• C)the same relative quantities of goods as in a base year.
• D)goods and services whose quality improves at the rate of growth of real GDP.
• E)more computers and CD players and fewer black-and-white TVs.

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Definitions:

NIC

Network Interface Card, a hardware component that connects a computer to a network.

ISP

Internet Service Provider, a company that provides individuals and organizations access to the Internet and other related services like website building and virtual hosting.

Data Plan

A connectivity plan or text messaging plan in which data charges are separate from cell phone calling charges and are provided at rates different from those for voice calls.

Smart Home

A dwelling in which devices and appliances are automated or controlled by apps.