The Presence of New Goods That Are of Higher Quality

question 249

Multiple Choice

The presence of new goods that are of higher quality than the old goods leads the BLS to

• A)update the market basket every time a new good is available.
• B)do nothing because at least some people still buy the old goods.
• C)try to separate price differences from improvements in quality.
• D)actually understate the cost of living when calculating the CPI.
• E)immediately update the reference base period used in calculating the CPI.

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Definitions:

New England Textile Factories

Industrial sites that were central to the American Industrial Revolution, primarily located in the New England region, where textiles were produced in large quantities.

Autonomy

The right or condition of self-government, especially in a particular sphere.

Breaks

Periods of time allocated during work or other activities for rest or recreation.

Market Revolution

The Market Revolution was a period of radical changes in the United States economy in the 19th century, characterized by the expansion of markets, innovations in transportation and communication, and shifts in labor practices.