Linda Is Taking an Intelligence Test

question 72

Multiple Choice

Linda is taking an intelligence test. During the test, the teachers walk through the halls and chat loudly with each other. Due to these distractions, Linda scores lower on the test than she would have if she had been able to concentrate fully. The influence of the teachers' chatting is an example of

• A) reliability.
• B) a validity bias.
• C) a cohort effect.
• D) measurement error.

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Definitions:

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.

Competitive Price-Taker

A market participant who cannot influence the price on the market but instead must accept the prevailing market price.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.