Suppose That a Soft-Drink Company Performs an Experiment with a New

question 24

Multiple Choice

Suppose that a soft-drink company performs an experiment with a new type of soft drink in which experimental subjects always taste this new product first, and then taste a competitor's product second. This study has an error in design that is termed a(n) :

• A) history effect.
• B) maturation effect.
• C) order effect.
• D) guinea pig effect.

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Definitions:

Economic Problem

The issue of limited resources to meet unlimited wants and needs, requiring choices and prioritization.

Centralized Decision Making

A process where decisions are made by a few people or a single authority, rather than being dispersed among many.

Destroy Incentives

To eliminate or significantly reduce the motivations or reasons for individuals or entities to take a particular action or endeavor.

Society's Resources

The total means available to a society, including natural resources, human capital, and manufactured goods, used for production and consumption.