The Price Level Is Measured in Some Time Period with an Index

question 13

Multiple Choice

The price level is measured in some time period with an index number,such as the number 118.6.How is such a number of use to us?

• A)It allows us to compare it to the value of the same index number from another time period to determine the rate of change of the price level.
• B)The index number tells us the rate of inflation.
• C)It tells us the dollar value for the average basket of goods and services bought by the typical Canadian household.
• D)It tells us the real value for the average basket of goods and services bought by the typical Canadian household.
• E)It tells us the percentage change in the price level from the previous time period.

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Definitions:

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a tool for assessing the intelligence and cognitive ability of adults.

WISC-IV

The Wechsler Intelligence Scale for Children-Fourth Edition, a tool used to assess the intellectual ability of children between the ages of 6 and 16.

Raven's Progressive Matrices

A nonverbal group test typically used to assess abstract reasoning and fluid intelligence.

Wechsler Tests

A series of standardized tests used to measure intelligence and cognitive ability in adults and children.