If the Prices of the Goods and Services Contained in the CPI

question 24

Multiple Choice

If the prices of the goods and services contained in the CPI market basket increase from the base period to the next year,we know that

• A)the next year's CPI will be above 100.
• B)the next year's CPI will be below 100.
• C)the cost of the CPI market basket at next year's prices is lower than the cost of the CPI market basket at base period prices.
• D)the market basket used by the ABS must be changed next year to reflect consumers' new expenditures.
• E)the inflation rate is falling.

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Definitions:

Bureaucratic Approach

A method of organization emphasizing a structured hierarchy, strict rules, and a clear division of responsibilities to achieve efficiency.

Scientific Approach

A methodical process used for investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge, based on empirical or measurable evidence.

Theory X

A management theory assuming employees are inherently lazy and will avoid work if they can, necessitating control and coercion by managers.

Theory Y

A management concept suggesting that employees are inherently motivated to work and will show high levels of creativity and responsibility if given the chance.