After Examining the FBI Crime Reports for a 30-Year Period

question 2

Multiple Choice

After examining the FBI Crime Reports for a 30-year period, Professor Hall claimed that the incidence of rape has increased. After examining the same reports, Professor Shine claimed that the reporting of rape, not the incidence of rape, has increased. This illustrates​

• A) ​the problem of reliability in using existing statistics.
• B) the problem of validity in using existing statistics.​
• C) the need to replicate existing statistics.​
• D) the ecological fallacy.​

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Definitions:

Price Floor

A minimum legal price below which a product cannot be sold; to have an impact, a price floor must be set above the equilibrium price.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Substitution Effect

The economic concept that as prices rise (or incomes decrease), consumers will replace more expensive items with cheaper alternatives, holding utility constant.

Relative Price

Relative price is the price of one good or service compared to another, essentially indicating the trade-off between choosing one over the other.