An Economist Is Interested in Studying the Incomes of Consumers

question 120

Multiple Choice

An economist is interested in studying the incomes of consumers in a particular region.The population standard deviation is known to be $1,000.A random sample of 50 individuals resulted in an average income of $30,000.What sample size would the economist need to use for a 95% confidence interval if the width of the interval should not be more than $100?

• A) n = 1537
• B) n = 385
• C) n = 20
• D) n = 40

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Definitions:

Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.

MPs

Members of Parliament, elected officials who represent constituencies and have legislative responsibilities in the national government.

Purely Competitive Conditions

A market structure characterized by many buyers and sellers, where each seller offers an identical product, leading to price taken as given by individual sellers due to the market's competition.

Marginal Product Data

Information that shows the additional output generated by adding one more unit of a factor of production, holding all else constant.