Consider a Collection of 100 Birds Where 20 of Them

question 11

Multiple Choice

Consider a collection of 100 birds where 20 of them are penguins, 25 are ostriches, 15 are hawks, and 40 are doves. Penguins and ostriches are unable to fly, whereas hawks and doves can. If a bird is randomly chosen from this population, what is the probability it will be a hawk?

• A) 0.15
• B) 0.20
• C) 0.25
• D) 0.40

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero; it represents the expenditures that consumers must make even when they have no income.

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, reflecting behavioral responses to changes in income.

Disposable Income

The amount of money left for households to use on saving and spending after income taxes are covered.

Savings Rate

The proportion of disposable income that is saved rather than spent by individuals or households.