Price Indexes Can Overstate Inflation Because They

question 55

Multiple Choice

Price indexes can overstate inflation because they

• A)do not contain the prices of services.
• B)do not contain the prices of any used goods.
• C)omit some quality improvements.
• D)do not contain the prices of foreign goods.

Distinguish between different experimental designs and their applications.

Identify and explain the purpose and types of measurement scales in research.

Understand the concepts of applied research, operational definitions, and research design requirements.

Understand the concept and importance of group identity and affiliation needs.

---

Definitions:

Recency Effect

The tendency to better remember information that is encountered last in a series.

Salience Effect

Refers to the tendency of individuals to focus on items or information that stand out more noticeably or are more significant to them.

Depth of Processing

A theory suggesting the depth (shallow to deep) of mental processing affects memory recall; deeper processing leads to better recall.

Retroactive Interference

The phenomenon where newly learned information interferes with the recall of information learned previously.