In a Simple Economy,people Consume Only Two Goods: Food and Clothing.The

question 56

Essay

In a simple economy,people consume only two goods: food and clothing.The market basket of goods used to compute the CPI has 50 units of food and 10 units of clothing.
$$\begin{array} { | l | c | c | } \hline & \text { Food } & \text { Clathing } \\\hline \text { Last year's price } & \$ 4 & \$ 10 \\\hline \text { This year's price } & \$ 6 & \$ 20 \\\hline\end{array}$$
a.What are the percentage increases in the price of food and in the price of clothing?
b.What is the percentage increase in the CPI?
c.Do these price changes affect all consumers to the same extent? Explain.

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Definitions:

Biological Approach

A perspective in psychology that explains mental processes and behavior by focusing on genetic, hormonal, and neurochemical explanations.

Evolutionary Approach

A theoretical perspective that seeks to explain behavior through the lens of adaptation and natural selection.

Psychology

The scientific study of the mind and behavior, including the processes associated with thoughts, emotions, and actions.

J.B. Watson

An American psychologist, considered one of the founders of behaviorism, who emphasized the study of observable behavior.