A Hypothesis Test Is to Be Performed $6.3 \%$ Prior to the Tax Cuts

question 35

Multiple Choice

A hypothesis test is to be performed. State the null and alternative hypotheses.
-The governor of a state claims that since his tax cuts have taken effect, the unemployment rate has dropped. The unemployment rate in the state had been $6.3 \%$ prior to the tax cuts.

• A) Null hypothesis: unemployment rate \(= 6.3 \%\)
• Alternative hypothesis: unemployment rate \(< 6.3 \%\)
• B) Null hypothesis: unemployment rate \(> 6.3 \%\)
• Alternative hypothesis: unemployment rate \(< 6.3 \%\)
• C) Null hypothesis: unemployment rate \(= 6.3 \%\)
• Alternative hypothesis: unemployment rate \(\leq 6.3 \%\)
• D) Null hypothesis: unemployment rate \(< 6.3 \%\)
• Alternative hypothesis: unemployment rate \(= 6.3 \%\)

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Definitions:

Labor

The effort by humans to produce goods or services in the economy.

Resource Demand Curve

A graphical representation showing the relationship between the price of a resource and the quantity of that resource demanded by firms.

Shift Factors

Variables or conditions that can cause a shift in demand or supply curves, thus changing market equilibrium.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital, in the production process.