Consumers Buy Both Alcoholic and Nonalcoholic Beverages

question 60

Multiple Choice

Consumers buy both alcoholic and nonalcoholic beverages.If the government tries to discourage people from drinking alcoholic beverages by imposing an excise tax on them but gives consumers an income subsidy to keep the consumers on their original indifference curves:

• A)the same amount of both goods will be consumed.
• B)fewer alcoholic and more nonalcoholic beverages will be consumed.
• C)more alcoholic and fewer nonalcoholic beverages will be consumed.
• D)it is impossible to determine what will happen to the consumption of alcoholic and more nonalcoholic beverages.

Comprehend the role and calculation of variance in statistical analysis.

Recognize the conceptual underpinnings of between-group and within-group variability.

Calculate and interpret F-ratios and their significance in hypothesis testing.

Grasp the theoretical distribution implications for F-ratios and t-tests.

---

Definitions:

Null Hypothesis

The hypothesis tentatively assumed true in the hypothesis testing procedure.

Parameter

A numerical characteristic of a population, as opposed to a statistic, which is a characteristic of a sample.

Critical Value

A threshold value in hypothesis testing, beyond which there is evidence against the null hypothesis.

T Value

A value derived from a T-distribution used in hypothesis testing and in generating confidence intervals.