Consider a 20 Percent Increase in the Price of a 2

question 27

Multiple Choice

Consider a 20 percent increase in the price of a 2 pound bag of sugar and a 20 percent increase in the price of first- class airline travel. In response to the price changes, which of the following is most likely to be true?

• A)The total revenue from first- class airline travel will not change.
• B)The percentage change in the quantity demanded for a 2 pound bag of sugar will be larger than the percentage change in the quantity demanded for first- class airline travel.
• C)Because first- class airline travel is a luxury good, the quantity demanded will not change with the 20 percent increase in price.
• D)The percentage change in the quantity demanded for first- class airline travel will be larger than the percentage change in the quantity demanded for a 2 pound bag of sugar.

Identify and understand the role of construct validity in reflecting underlying ideas in tests.

Interpret the relationship between test-retest reliability and temporal stability of measures.

Understand the importance and calculation of interrater reliability in observing behaviors.

Know how to determine and interpret scores on psychological tests, including true, observed, and error scores.

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Definitions:

Western Division

A geographical or organizational subdivision of a company that operates in the western region.

Internal Colonialism

Involves one race or ethnic group subjugating another in the same country. It prevents assimilation by segregating the subordinate group in terms of jobs, housing, and social contacts.

Domination

Domination is the exercise of control or influence over someone or something, often in a way that limits freedom and autonomy.

Culture

The shared values, norms, behaviors, and material objects that constitute a people's way of life.