Remember That the Laspeyres Price Index Uses the Old Quantities

question 32

Multiple Choice

Remember that the Laspeyres price index uses the old quantities for the weights.In 1991, good x cost $5 and good y cost $1.The current price of good x is $7 and the current price of good y is $6.In 1991 the consumption bundle was (x, y) = (2, 4) .The current consumption bundle is (x, y) = (5, 3) .The Laspeyres index of current prices relative to 1991 prices is closest to which of the following numbers?

• A)3.79
• B)2.71
• C)0.26
• D)1.89
• E)1.26

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Definitions:

Dispositional Attributions

Explanations for behaviour based on an actor’s personality or intellect.

Situational Attributions

Explanations for behaviour based on an actor’s external situation or environment.

Self-serving Bias

The common human tendency to attribute successes to internal factors (like ability or effort) and failures to external factors (like luck or bias).

Dispositional

Refers to inherent personality traits and tendencies that influence behavior and attitudes.