Consider Three Imaginary Countries

question 47

Multiple Choice

Consider three imaginary countries. In Mainland, saving amounts to $4,000 and consumption amounts to $8,000; in Upland, saving amounts to $2,000 and consumption amounts to $15,000; and in Lowland, saving amounts to $6,000 and consumption amounts to $11,000. The saving rate is

• A)higher in Mainland than in Lowland, and it is higher in Lowland than in Upland.
• B)higher in Lowland than in Mainland, and it is higher in Mainland than in Upland.
• C)higher in Lowland than in Upland, and it is the same in Upland and Mainland.
• D)higher in Mainland than in Upland, and it is the same in Mainland and Lowland.

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Definitions:

Subjective Bias

The tendency for personal judgments to be influenced by personal beliefs, opinions, and emotions rather than objective facts.

Objective

Not influenced by personal feelings or opinions in considering and representing facts.

L-data

Life record data, which includes real-world facts and outcomes from an individual's life used in psychological research.

Objective Tests

Assessments that measure an individual's knowledge or abilities in a way that is intended to be free of bias, usually featuring standardized questions with predetermined answers.