In Questions Make the Assumption That the Change in Housing

question 49

Multiple Choice

In Questions make the assumption that the change in housing prices exactly matches the change in the CPI. In fact, housing is only part of the CPI, and figures into the CPI through rents rather than sale prices, so this assumption may be far from correct.
-When John sold a house in 2003 for $115,000, he received $20,000 more than he paid for it. When did he purchase the house? (Use Table 21.5.)

• A) 1984
• B) 1991
• C) 1995
• D) 1998

Understand the relationship between disposable income, consumption, savings, and their respective ratios (APC, APS).

Analyze how consumption, saving, and income levels are interrelated through various economic models and functions.

Understand the concept of disposable income and how it relates to consumption and saving.

Calculate induced consumption from given levels of disposable income.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.