In a Survey of 1,000 People, 420 Are Opposed to an Income

question 95

Multiple Choice

In a survey of 1,000 people, 420 are opposed to an income tax increase. Construct a 95 percent confidence interval for the proportion of people in the population opposed to this tax increase.

• A) [.394, .446]
• B) [.389, .451]
• C) [.380, .460]
• D) [.399, .441]

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Definitions:

Consumer Sovereignty

The theory that consumer preferences determine the production of goods and services in an economy.

Willingness to Pay

The maximum amount an individual is ready to spend for a good or service, reflecting its perceived value.

Ability to Pay

A principle suggesting that the amount of tax an individual or entity should pay is based on the level of their economic resources or income.

Circular Flow Model

An economic model that depicts how money moves through the economy in a circular manner between producers and consumers, including various sectors like households, firms, government, and the foreign sector.