If the Total Expenditures of a Typical Family Equaled $35,000

question 123

Multiple Choice

If the total expenditures of a typical family equaled $35,000 per year in 2010 and the exact same basket of goods and services cost $40,000 in the year 2015, the family's cost of living:

• A)increased by 14 percent.
• B)decreased by 12.5 percent.
• C)decreased by 14 percent.
• D)increased by 12.5 percent.

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Definitions:

Covariation Model

Kelley’s theory of causal attribution – people assign the cause of behaviour to the factor that covaries most closely with the behaviour.

Emotional Lability

The propensity for rapid, often unpredictable changes in emotion.

Correspondent Inference

A theory suggesting that people infer the motives and dispositions of others from observable behaviors, especially if the behaviors are unexpected.

Causal Inference

The process of determining the cause-and-effect relationship between variables, typically assessed through controlled experiments or observational studies.