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When a Test Was Described as Measuring "Problem-Solving Skills," African

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When a test was described as measuring "problem-solving skills," African American students did just as well as white students. But when told that the same test measured "intellectual ability," African American students scored lower than white students. This example illustrates which of the following?


Definitions:

Perfect Substitutes

Perfect substitutes are two goods that can be used in place of each other with no loss of utility or preference by consumers.

Income Effect

Refers to the change in an individual's or economy's purchase of goods and services resulting from changes in income levels.

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's level of utility constant.

Price

The fiscal amount needed for the acquisition of a product or service.

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