Economic Analysis Suggests That Gains from Specialization and Exchange

question 81

Multiple Choice

Economic analysis suggests that gains from specialization and exchange

• A) will not be realized unless a central planning authority requires that all goods be produced by the low opportunity cost supplier.
• B) will be realized if individuals are allowed to pursue goals that are in their own self-interest.
• C) will not be realized unless business firms employ economists when making decisions about the proper combination of resources to utilize in the production process.
• D) will be realized if individuals place the public interest above the pursuit of their own self-interest.

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Definitions:

Average Regression Interval

Average regression interval describes the range within which the average value of the dependent variable falls, based on a linear regression model.

X Versus Y Correlation Interval

A range of values that estimates the strength and direction of the linear relationship between two variables.

Prediction Interval Estimate

An estimate of an interval in which future observations will fall, with a certain probability, given what has already been observed.

Confidence Interval Estimate

A range of values defined so that there is a specified probability that the value of a parameter lies within it.