An Analyst Collects Data on the Weekly Closing Price of Gold

question 33

Multiple Choice

An analyst collects data on the weekly closing price of gold throughout a year.The scale of this data is ________________.

• A)Ratio scale
• B)Ordinal scale
• C)Interval scale
• D)Nominal scale

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Definitions:

Compensating Variation

An economic concept representing the amount of money an individual would need to reach a level of utility as before an economic change.

Income

The total earnings acquired by an individual or business from various sources including work, investments, or sales, crucial for determining spending, savings, and investment decisions.

Utility Function

Reflects the consumer's preferences, assigning values to combinations of goods and services to indicate the satisfaction gained from them.

Compensating Variation

An economic concept that quantifies the amount of money needed to compensate someone for a policy change, maintaining their original utility level.