Smith Is Given a Voucher That Can Be Spent Only

question 31

Multiple Choice

Smith is given a voucher that can be spent only on textbooks.Smith has a budget constraint with textbooks measured along the horizontal axis and everything else on the vertical axis.Suppose everything else is comprised only of normal goods.Then

• A)the voucher causes Smith to increase his spending on textbooks by more than the amount of the voucher.
• B)Smith will most likely end up spending some more money on everything else after receiving the voucher.
• C)Smith will not buy any textbooks because he can use the voucher for all other goods.
• D)the voucher does not have any impact on Smith's consumption..

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Definitions:

Basis of Personality

The underlying factors or elements that dynamically shape an individual's character and behavior.

Rorschach Inkblot Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both, to examine a person's personality characteristics and emotional functioning.

Reliability

The extent to which a test yields a consistent, reproducible measure of performance.

Validity

The soundness of the conclusions that a researcher draws from an experiment. In the realm of testing, the extent to which a test measures what it is intended to measure.