Suppose an Index of Average Prices of Imported Goods in Canada

question 32

Multiple Choice

Suppose an index of average prices of imported goods in Canada indicates an increase in price of 2.3% over a 12-month period.Over the same period the Consumer Price Index indicates an increase in the general price level of 2.3%.What is the change in the price of imports relative to the change in the overall price level?

• A)an increase of 2.3%
• B)an increase of 4.6%
• C)a decrease of 2.3%
• D)a decrease of 4.6%
• E)no change

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Definitions:

Additional Research

The process of seeking out more information or evidence beyond what is initially available to deepen understanding or resolve uncertainties.

Cognitive Heuristics

Human decision-making shortcuts people rely on to expedite their judgments about what to believe or what to do.

Self-Regulation

A process in which one monitors one's cognitive activities, the elements used in those activities, and the results educed, particularly by applying skills in analysis, and evaluation to one's own inferential judgments with a view toward questioning, confirming, validating, or correcting either one's reasoning or one's results.

False Positives

Instances in which a test incorrectly indicates the presence of a condition or attribute.