When Adults of Varying Ages Were Tested for Their Memory

question 63

Multiple Choice

When adults of varying ages were tested for their memory of a recently learned list of 24 words,the older adults demonstrated

• A)no decline in either recall or recognition.
• B)a decline in recognition but not in recall.
• C)a decline in recall but not in recognition.
• D)a decline in both recognition and recall.

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Definitions:

Slutsky Equation

Formula for decomposing the effects of a price change into substitution and income effects.

Substitution Effects

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Income Effects

Changes in consumer's purchasing power and consumption patterns resulting from changes in income.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of utility.