If Productivity Increases by 5 Percent but Wages Increase by 2

question 127

Multiple Choice

If productivity increases by 5 percent but wages increase by 2 percent, then it is most likely that the price level will:

• A)rise by 3 percent.
• B)fall by 3 percent.
• C)rise by 7 percent.
• D)fall by 7 percent.

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Definitions:

Primacy Judgments

The tendency for the first items presented in a series to be better remembered or more influential than later items.

Attributional Judgments

The process of explaining the causes of behaviors and events, which can influence personal perceptions and social interactions.

Person Perception

The process by which individuals form impressions of others and make judgments about their attributes and characteristics.

Snap Judgments

Quick decisions or evaluations made without thorough consideration or reflection.