Why Is It Important to Choose a Representative Sample of the Population

question 11

Multiple Choice

Why is it important to choose a representative sample of the population?

• A) increase statistical precision
• B) determine group differences
• C) maximize generalizability of results
• D) find significant results

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Total Surplus

The combined total of producer surplus and consumer surplus, indicating the overall societal benefits derived from the consumption and production of a service or product.

Deadweight Loss

The loss of economic efficiency that can occur when equilibrium for a good or service is not achieved.

Tariff

A tax imposed by a government on imported goods, often used to protect domestic industries and to raise government revenue.