Consider a Small Economy in Which Consumers Buy Only Two

question 186

Multiple Choice

Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that

• A)the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year.
• B)the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year.
• C)neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year.
• D)neither the price of pretzels nor the price of cookies changes from year to year.

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Definitions:

Social Identity

The portion of an individual's self-concept derived from perceived membership in a relevant social group.

Collective Efficacy

The shared belief in the ability of a group to achieve common objectives and influence outcomes in their community.

Success

Refers to the accomplishment of an aim or purpose.

Equifinality

A principle that a given end state can be reached by many potential means or from different starting points in complex systems.