Exhibit 5-12

question 46

Multiple Choice

Exhibit 5-12.According to a Department of Labor report,the city of Detroit had a 20% unemployment rate in May of 2011 (Bureau of Labor Statistics,May,2011) .Eight working-age residents were chosen at random. Refer to Exhibit 5-12.What is the probability that exactly one of the residents was unemployed?

• A)0.0419
• B)0.1678
• C)0.2936
• D)0.3355

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities, often included in the price of items like gasoline, alcohol, and tobacco.

Tax Wedge

The difference between the amount a buyer pays and the amount a seller receives for a good or service due to taxation.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Excise Tax

A type of tax levied on specific goods, services, or activities, often aimed at discouraging undesirable behaviors or generating revenue.