If the Consumer Price Index Was 115 in One Year

question 139

Multiple Choice

If the consumer price index was 115 in one year and 120 in the next year, then the rate of inflation from one year to the next was:

• A)4.3 percent.
• B)5.1 percent.
• C)5.3 percent.
• D)6.8 percent.

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Definitions:

Illusory Correlation

The belief in a connection between two factors when in reality, there is no such link.

Express Checkout

A dedicated checkout lane in stores for customers purchasing a limited number of items, designed for quick service.

Actor-Observer Bias

A cognitive bias that involves attributing one's own actions to external factors while attributing others' actions to their character or personality.

Self-Serving Bias

A cognitive bias where people attribute positive outcomes to their own actions and negative outcomes to external factors.