Which of the Following Is an Example of a Demand

question 178

Multiple Choice

Which of the following is an example of a demand shock?

• A)Hurricane Harry knocks out oil drilling platforms in the Gulf of Mexico.
• B)Consumers become worried about job loss and buy fewer goods and services than expected.
• C)Floods in the Midwest destroy crops.
• D)The federal government unexpectedly requires automobile producers to raise fuel efficiency standards.

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Definitions:

Two-sided Test

A statistical test that considers both directions of effect by evaluating whether a parameter is either significantly higher or lower than a hypothesized value, allowing for rejection of the null hypothesis for deviations in two directions.

P-value

A metric used in statistics to assist researchers in assessing the importance of their findings, signifying the chance of achieving the observed outcomes assuming the null hypothesis is accurate.

Test Statistic

A calculated value that is used to assess the evidence against the null hypothesis in a statistical test.

Alternative Hypotheses

Statements positing a specific relationship or difference between variables, considered when the null hypothesis is suspected to be false.