Exhibit 1-1 In a Recent Study Based Upon an Inspection of 200

question 38

Multiple Choice

Exhibit 1-1
In a recent study based upon an inspection of 200 homes in Daisy City, 80 were found to violate one or more city codes.
-Refer to Exhibit 1-1. The manager's statement that 40% of Daisy City's 2,000 homes are in violation of city codes is

• A)an exactly correct statement
• B)only an approximation, since it is based upon sample information
• C)obviously wrong, since it is based upon a study of only 200 homes
• D)None of these alternatives is correct.

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Definitions:

Trade Deficits

The economic condition that occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade.

Smoot-Hawley Tariff

A U.S. law enacted in 1930, which raised tariffs on over 20,000 imported goods to record levels, leading to a significant decrease in international trade.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States following the stock market crash of 1929.

Revenue-Raising

Activities or policies implemented to increase the financial income of an organization or government.