A Study of 70-Year-Olds Finds That They Are More Likely

question 15

Multiple Choice

A study of 70-year-olds finds that they are more likely to vacation in January than younger individuals. What can be concluded?

• A) Increased age caused participants to vacation more.
• B) Sex of participant is a confounding variable.
• C) Since age and cohort are confounding variables, it is not possible to determine whether increased vacations in January are due to age or historical time in which one lived.
• D) Time of measurement is a confounding variable.

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

MC = P

A formula indicating that in perfect competition, the price (P) is equal to the marginal cost (MC) of producing an additional unit.

Economic Profits

The variance between complete earnings and aggregate expenses, taking into account both overt and covert costs.

Downward-Sloping Demand

A market scenario where the quantity demanded by consumers decreases as the price of the good increases, illustrating the inverse relationship between price and demand.