When a Respondent Tells an Interviewer That His Annual Income

question 20

Multiple Choice

When a respondent tells an interviewer that his annual income last year was $40 000 (because he is embarrassed to admit that it was $20 000) , it is an example of:

• A) nonresponse error.
• B) auspices bias.
• C) extremity bias.
• D) social desirability bias.

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Definitions:

Open Market

An economic system with no or minimal barriers to trade, where prices are determined by supply and demand forces without significant regulation.

Variable Interests

Interests in an entity that change with fluctuations in the entity's net asset value, income, or cash flows.

Residual Profits

Profits remaining after all costs, including capital costs such as interest on loan capital and equity capital, have been deducted.