Suppose That a Policy Maker Knows There Are Currently 1,000

question 9

Multiple Choice

Suppose that a policy maker knows there are currently 1,000 cars purchased each year in the city. In order to build a new park next year, which will cost $500,000, the policy maker decides to impose a tax of $500 on each car purchased. Which of the following scenarios is most likely to occur?

• A) The $500 tax will disincentivize car purchases, and fewer than $500,000 will be raised.
• B) The $500 tax will have no effect on car purchases, and the $500,000 will be raised.
• C) Knowing the purpose of the $500 tax, more people will be incentivized to make car purchases, and the park will be funded.
• D) The $500 tax is a sunk cost and thus will be ignored by people making car purchases.

Understand how to calculate 95% confidence intervals for sample means and interpret the results.

Recognize the relationship between sample size, standard error, and the width of confidence intervals.

Identify correct statements about the probability and interpretation of confidence intervals.

Apply knowledge of confidence intervals to determine the impact of sample size on the precision of mean estimates.

---

Definitions:

Job Description

A formal account of an employee's responsibilities, duties, and scope of work within an organization.

Paired Comparison

A technique used in performance appraisals where employees are compared with each other in pairs, to rank individuals in terms of performance.

Classification/Grading

A job evaluation approach where positions are grouped into categories or grades based on similar duties, responsibilities, and qualifications requirements.

Job Evaluation

A systematic process used to determine the relative worth of jobs within an organization to establish fair and equitable pay.