Real Income Is Computed By

question 26

Multiple Choice

Real income is computed by:

• A) dividing money income by the CPI and multiplying by 100.
• B) dividing the CPI by money income and multiplying by 100.
• C) multiplying money income by the CPI.
• D) subtracting the CPI from money income.
• E) dividing a dollar by the CPI and multiplying by 100.

---

Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

Conservation

The act of preserving, protecting, or restoring the natural environment and its wildlife.

Cognitive Development

The construction of thought processes, including remembering, problem solving, and decision-making, from childhood through adolescence to adulthood.

Attention Span

The length of time a person can concentrate on a task without becoming distracted.