When You See an Airplane Flying Away from You, It

question 62

Multiple Choice

When you see an airplane flying away from you, it appears to get smaller. However, you know that it stays the same size. The difference between your sensation and your perception of the plane illustrates the concept of

• A) perceptual constancy.
• B) sensory confusion.
• C) sensory consistency.
• D) perceptual disparity.

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Definitions:

International Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, allowing for stable exchange rates among countries.

Gold Flow

The movement of gold between countries, often used as a form of international payment or to stabilize currencies under the gold standard.

Price and Incomes

Policies or measures aimed at controlling the growth of prices and incomes to curb inflation without affecting employment.

Equilibrium Exchange Rate

The exchange rate at which the demand for a currency exactly matches its supply, leading to market balance.