Use the Following to Answer Questions

question 20

Multiple Choice

Use the following to answer questions
A sociologist wants to determine if the life expectancy of people in Africa is less than the life expectancy of people in Asia. The data obtained is shown in the table below.
-Calculate the critical value. Use α = 0.05.

• A) -1.65
• B) -2.33
• C) -2.58
• D) -1.96

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Definitions:

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

APC

Average Propensity to Consume, which measures the fraction of income that households spend on consumption rather than saving.

MPS

Stands for Marginal Propensity to Save, which is the ratio of the change in savings to the change in disposable income. It indicates how much of an additional income unit is saved rather than spent.

Capacity Utilization Rate

The percentage of an industry or economy's total potential output that is actually being realized at a given time.