A Group of Freshmen at a Local University Consider Joining

question 3

Multiple Choice

A group of freshmen at a local university consider joining the equestrian team. Thirty-five percent of students choose Western riding, 45% choose dressage, and 40% choose jumping. Fifteen percent choose both dressage and jumping, while 15% choose Western and dressage. No one chooses Western and jumping. There are no horses suitable for two styles, and each student is assigned to one horse. If two students decide to join the team, what is the probability that one student joins jumping only and the other student joins the Western team, if they independently decide?

• A)0.175
• B)0.125
• C)0.0375
• D)0.105

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Definitions:

Fiscal Policy

Government policies concerning taxation and spending to influence economic conditions, including aggregate demand.

Crowding Out

A situation where increased public sector spending leads to a reduction in private sector spending, which can dampen or negate the intended stimulative effect of the government's expenditures.

Investment Spending

Expenditure on capital goods including buildings, machinery, and equipment, which is intended to increase future production.

Aggregate Expenditure

The total amount spent on goods and services in an economy at a particular time.