Otto Is Examining Whether Paying for Purchases in Cash Leads

question 27

Multiple Choice

Otto is examining whether paying for purchases in cash leads to less spending than paying for purchases with a credit card. His analyses reveal a statically significant difference between groups. In interpreting his results, he is likely to say that his study _____ that using cash for purchases leads to less spending.

• A) proves
• B) disproves
• C) suggests
• D) challenges the claim

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Definitions:

Price Of Capital

The cost of using capital goods in production, which includes interest rates paid on loans or the rate of return required by investors on capital.

Price Of Labor

The wage or compensation given to workers for their labor, often determined by skill level, demand, and market conditions.

Isocost

A line representing all combinations of inputs that can be purchased for the same total cost, given input prices.

Total Expenditures

The sum of all spending incurred by individuals, firms, or the government within a specific period.