Which of the Following Is True About Construct Validity

question 40

Multiple Choice

Which of the following is true about construct validity?

• A)it is never established in a single study
• B)it is concerned with the question of whether the construct being measured is a meaningful construct
• C)it is concerned with the question of whether a tool developed to measure a construct is the best one available
• D)all of the above

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Definitions:

Nominal Interest Rate

The stated interest rate on a loan or investment, not adjusted for inflation.

Rational Consumer

An assumption in economics that consumers aim to maximize their utility or satisfaction from consumption choices, given their budget constraints.

Cobb-Douglas Utility Function

A specific form of utility function used in economics to represent preferences, where utility is derived from a combination of goods, typically modeled with constants representing the elasticity of substitution between those goods.

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the real cost of borrowing.