A 5 Percent Increase in the Consumer Price Index (CPI)

question 178

Multiple Choice

A 5 percent increase in the Consumer Price Index (CPI) means a

• A) 5 percent increase in the cost of living.
• B) less than 5 percent increase in the cost of living because consumers substitute cheaper products for those whose prices rise.
• C) more than 5 percent increase in the cost of living because consumers substitute cheaper products for those whose prices rise.
• D) less than 5 percent increase in the cost of living because of falling quality of products over time.
• E) more than 5 percent increase in the cost of living because of the introduction of new products.

---

Definitions:

Information-Processing Stages

The steps through which information is acquired, encoded, stored, and retrieved in the cognitive system.

Information Attention

The focus on relevancy and significance of information in decision-making or cognitive processes.

Information Retrieval

Information retrieval is the process of obtaining relevant information from a collection of resources, such as databases or the internet, based on specific queries or criteria.

Projection

Assigns personal attributes to other individuals.