In a Study of Car Pricing, Researchers Found

question 5

Multiple Choice

In a study of car pricing, researchers found

• A) race and sex were related to initial offer prices and to the final prices offered testers.
• B) White men's initial offers were higher but final prices were lower than other testers.
• C) White women were offered lower prices than all other groups.
• D) strong consumer advocacy has reduced bias in car pricing.

---

Definitions:

Monetary Rule

A guideline for the monetary policy stating that the central bank should aim at regulating the money supply to maintain stable prices, output, and employment.

Rational Expectations

An economic theory proposing that individuals make decisions based on their best forecast using all available information, predicting future events with some degree of accuracy.

Federal Reserve

The central bank of the United States, responsible for monetary policy.

Life Expectancy

The average period that an organism is expected to live, based on statistical analysis.