A Scale of Measurement in Which Objects or Individuals Are

question 4

Multiple Choice

A scale of measurement in which objects or individuals are categorized and the categories form a rank order along a continuum is a(n) _____ scale.

• A)nominal
• B)ordinal
• C)interval
• D)ratio

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Definitions:

Laspeyres Price Index

A measure of price inflation or deflation for a specified set of goods and services, using the quantities of the base year as weights.

Ideal Cost-Of-Living Index

Cost of attaining a given level of utility at current prices relative to the cost of attaining the same utility at base-year prices.

Paasche Index

An economic measure that calculates the change in the cost of purchasing a specified basket of goods and services in a given year compared to a base year, using current-period weighting.

Nominal Income

The amount of money earned in current dollars, not adjusted for inflation.