Exhibit 2-1 The Numbers of Hours Worked (Per Week)by 400 Statistics Students

question 63

Multiple Choice

Exhibit 2-1
The numbers of hours worked (per week) by 400 statistics students are shown below.

-Refer to Exhibit 2-1.The relative frequency of students working 9 hours or less

• A)is 20
• B)is 100
• C)is 0.95
• D)0.05

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Definitions:

Autonomous Consumption

The level of consumption that does not change with fluctuation in income; it is the consumption level when income is zero.

Consumption

The use of goods and services by households, representing one of the primary components of gross domestic product (GDP).

Disposable Income

The aggregate financial resource for households to allocate towards spending and saving after mitigating income taxes.

Induced Consumption

Consumer spending that increases when income increases and decreases when income decreases, other than spending necessary for basic needs.