Suppose There Are Only Two Goods (Good a and Good

question 144

Multiple Choice

Suppose there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If, in the base year, the Price of Good A is $5 and the Price of Good B is $10, and in the next year the Price of Good A is $6 and the Price of Good B is $9, one problem with the CPI way of calculating inflation is

• A)it understates the importance of Good A in the budget.
• B)it understates the importance of Good B in the budget.
• C)it fails to recognize that people will substitute (to some degree)Good B for Good A and therefore overstates the degree of inflation.
• D)it fails to recognize that people will substitute (to some degree)Good B for Good A and therefore understates the degree of inflation.

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Definitions:

Cultural Constraints

Limitations placed on individuals' behaviors, thoughts, and feelings by societal norms and expectations.

Sexual Scripts

Socially learned ways of responding in sexual situations, outlining the roles, actions, communications, and expectations for sexual behavior.

Sexual Double Standard

The social norm that allows or excuses certain sexual behaviors in one gender but not the other, often more permissive for men than women.

Bisexuality

Sexual attraction to both males and females.