The Most Recent Edition of STANDARDS for Educational Tests Defines

question 53

Multiple Choice

The most recent edition of STANDARDS for educational tests defines validity in terms of

• A) the interpretation and meaning of test scores.
• B) extent to which a test measures what it claims to measure.
• C) consistency with which a test measures whatever it does measure.
• D) trustworthiness of the scores.

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Definitions:

Competitive Industries

Industries characterized by many firms competing for market share, leading to innovation and efficient resource allocation.

Production Costs

Expenses incurred during the process of creating a good or service, including labor, raw materials, and overhead costs.

Decreasing-Cost Industry

An industry in which expansion through the entry of firms lowers the prices that firms in the industry must pay for resources and therefore decreases their production costs.

Long-Run Supply Curve

As it applies to macroeconomics, a supply curve for which price, but not real output, changes when the demand curves shifts; a vertical supply curve that implies fully flexible prices.