When Collective Decision Making Is Utilized to Resolve Economic Questions

question 27

Multiple Choice

When collective decision making is utilized to resolve economic questions regarding the allocation of resources,

• A) decentralized decision making is inevitable.
• B) central planning and political bargaining will replace market forces.
• C) individual preferences are of no importance.
• D) economic equality will result.

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Definitions:

Statistical Procedure

A method or technique used for collecting, analyzing, interpreting, and presenting data.

T Value

A statistic calculated in a T-test that determines the significance of the difference between two groups' means.

Test Statistic

A value calculated from sample data during hypothesis testing. It is used to decide whether to reject the null hypothesis.

Significance Level

The probability of rejecting the null hypothesis when it is true; a threshold for determining whether a result is statistically significant.