Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A)Consumer surplus measures the total benefit from participating in a market.
• B)When a market is in equilibrium, consumer surplus equals producer surplus.
• C)Consumer surplus measures the net benefit from participating in a market.
• D)Producer surplus measures the total benefit received by producers from participating in a market.

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Definitions:

Type II Error

A statistical mistake made by failing to reject a false null hypothesis, also known as a false negative.

Null Hypothesis

A default hypothesis that there is no significant difference or relationship, serving as the basis for statistical testing.

Alternative Hypothesis

It is a statement that suggests there is a difference or effect in the population parameters being studied, contradicting the null hypothesis.

Level of Significance

Refers to the probability threshold below which the null hypothesis is rejected, indicating the degree of evidence required to conclude that an effect is statistically significant.