Consider This Argument

question 36

Multiple Choice

Consider this argument. "This test can't be valid because there were too few females in the standardization program." This argument illustrates confusion between ___.

• A) Reliability and validity
• B) Reliability and accuracy of norms
• C) Validity and accuracy of norms
• D) Validity and purpose of the test

---

Definitions:

Economic Efficiency

A state where resources are allocated in a manner that maximizes the production of goods and services without wasting any resources.

Economies of Scale

Financial advantages gained by firms due to their operational size, where a greater volume of production usually correlates with a lower cost for each output unit.

Per-unit Costs

The cost incurred for producing or acquiring a single unit of a product or service.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market at a lower cost than two or more firms due to economies of scale.