If Everyone Buys the Same Goods Every Year and the Price

question 85

Multiple Choice

If everyone buys the same goods every year and the price of housing rises by 38 percent,it is

• A) certain the consumer price index (CPI)has increased,and if your nominal wage has risen by less than 38 percent,your real wage has fallen.
• B) certain the consumer price index (CPI)has increased,and if your nominal wage has risen by more than 38 percent,your real wage has risen.
• C) possible that the consumer price index (CPI)has increased,but it is certain your real wage has fallen.
• D) possible that the consumer price index (CPI)has increased; however,it is certain your real wage has risen if,and only if,your nominal wage increased by more than 19 percent because housing accounts for exactly 50 percent of the CPI.
• E) not possible to tell what happened to the consumer price index (CPI)because other than for housing,we do not know what happened to the prices of any of the other goods.

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Definitions:

Projective Tests

Psychological assessment tools that use ambiguous stimuli to elicit responses revealing hidden emotions and internal conflicts.

Five-Factor Theory

A model that outlines the five broad dimensions of personality as openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Humanistic Approach

A psychological perspective emphasizing individual potential for growth and the role of unique perceptions in guiding behavior and mental processes.

Self-Understanding

The individual's cognitive and affective perception of oneself, encompassing self-knowledge about one's attributes, roles, and goals.