Which Kinds of Items Are Most Likely to Be Confused

question 84

Multiple Choice

Which kinds of items are most likely to be confused in an experiment on short-term memory?

• A) vowels
• B) letters that sound alike
• C) letters that look alike
• D) consonants

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Definitions:

Income Effect

The adjustment in demand for goods and services triggered by a change in consumers' discretionary income.

Income Increases

Situations where an individual's or household's earnings rise, potentially affecting their spending, saving, and investment behaviors.

Budget Constraints

The limitations on the consumption choices of individuals or organizations due to limited resources.

Substitution Effect

The economic principle that as prices rise or incomes decrease, consumers will replace more expensive items with less costly alternatives.