If There Is a 5 Percent Increase in the CPI

question 85

Multiple Choice

If there is a 5 percent increase in the CPI, then there will most likely be

• A)a 5 percent rise in the cost of living.
• B)a less than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods.
• C)a more than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods.
• D)a less than 5 percent rise in the cost of living because of falling quality of goods over time.
• E)a more than 5 percent rise in the cost of living because of the introduction of new goods.

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Definitions:

Simple Reaction Time

The time it takes for a person to respond to a stimulus, such as a light or sound, with a simple response like a button press.

Choice Reaction Time

The time it takes for a person to make a decision between multiple stimuli, indicating the speed of decision making and cognitive processing.

Lexical Access Time

The amount of time it takes for a person to retrieve and recognize a word from memory, reflecting efficiency in language comprehension.

Cognitive Strategies

Techniques that individuals use to process information more effectively, aiding in learning, remembering, and problem-solving.