A Survey of Corporate Executives Is Being Planned to Determine

question 56

Short Answer

A survey of corporate executives is being planned to determine their mean amount of weekly work time. A pilot survey indicated that the mean work time per week is 50 hours, with a standard deviation of 10 hours. It is desired to estimate the mean weekly work time within 5 hours. The 95 percent level of confidence is to be used. How many executives should be surveyed?

Determine the effect of income changes on the demand for goods (normal and inferior goods).

Understand the concept and calculation of cross elasticity of demand.

Apply the midpoint formula to calculate elasticity.

Interpret the significance of elasticity values in economic decision-making.

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Definitions:

Domestic Price

The price of a good or service within a country's borders, distinct from its international or export price.

Quota

A trade limitation enforced by the government restricting the amount or financial worth of products that can be imported or exported over a certain timeframe.

Tax

A mandatory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Imports

Materials or services procured from another country and introduced into a domestic market for sale purposes.