Consider a Small Economy in Which Consumers Buy Only Two

question 71

Multiple Choice

Consider a small economy in which consumers buy only two goods -- apples and pears.In order to compute the consumer price index for this economy for two or more consecutive years,we assume that

• A)the number of apples bought by the typical consumer is equal to the number of pears bought by the typical consumer in each year.
• B)neither the number of apples bought by the typical consumer, nor the number of pears bought by the typical consumer, changes from year to year.
• C)the percentage change in the price of applies is equal to the percentage change in the price of pears from year to year.
• D)All of the above are correct.

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Definitions:

Procedural Memory

A type of long-term memory that enables individuals to perform tasks without conscious awareness, such as riding a bike or typing on a keyboard.

Flashbulb Memory

A highly detailed, exceptionally vivid 'snapshot' of the moment and circumstances in which a piece of surprising and consequential news was heard.

Cued Recall

A memory retrieval process in which hints or cues are given to aid in the recovery of information stored in memory.

Chunking

A cognitive strategy that involves breaking down information into smaller, manageable units or chunks to enhance memory and recall.