Under What Condition Might We Use Proportions Rather Than Means

question 19

Multiple Choice

Under what condition might we use proportions rather than means as the test statistic?

• A)when sample size is very small
• B)when sample size is very large
• C)when the variable of interest is only interval-ratio in level of measurement
• D)when the variable of interest is only nominal in level of measurement

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Definitions:

Upward-Sloping Demand

A theoretical market situation where, contrary to the typical downward-sloping demand curve, demand for a good or service increases as its price rises.

Ceteris Paribus

A Latin term meaning “other things constant” that is used when the effect of one change is being described, recognizing that if other things changed, they also could affect the result. Economists often describe the effects of one change, knowing that in the real world, other things might change and also exert an effect.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good and the actual market price they pay.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.