When the Quality of a Good Deteriorates While Its Price

question 24

Multiple Choice

When the quality of a good deteriorates while its price remains the same,the purchasing power of the dollar

• A)increases,so the CPI overstates the change in the cost of living if the quality change is not accounted for.
• B)increases,so the CPI understates the change in the cost of living if the quality change is not accounted for.
• C)decreases,so the CPI overstates the change in the cost of living if the quality change is not accounted for.
• D)decreases,so the CPI understates the change in the cost of living if the quality change is not accounted for.

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Definitions:

Homemaking

The management and maintenance of a household and its daily needs.

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family, related by blood or marriage, who are closely involved in the management of the business.

Child Care

The care, supervision, and guidance of children by a person other than the child's legal guardians.

Basically Competent

Refers to a minimal level of skill or knowledge that is deemed adequate to perform a task or duty.