The Strongest and Most Useful Form of Measurement Is the ________

question 90

Multiple Choice

The strongest and most useful form of measurement is the ________.

• A)nominal scale
• B)ordinal scale
• C)ratio scale
• D)interval scale

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Definitions:

Substitution Bias

Substitution bias occurs in inflation measurement and refers to the tendency of consumers to change their purchasing habits away from goods that have increased in price to cheaper alternatives, which is not always fully captured by price indexes.

CPI

The Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Consumer Substitution

The tendency of consumers to switch from one good to another in response to changes in relative prices, keeping their level of satisfaction or utility constant.

New Good

A product that has been recently developed or introduced to the market, offering new benefits or replacing existing goods.