Statistical Tests

question 20

Multiple Choice

Statistical tests

• A) provide us with raw numbers such as the number of people in a given city.
• B) focus on determining the probability that observed phenomena occurred by chance.
• C) are only used in science to influence political decision-making.
• D) provide only fake numbers.

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Definitions:

Optimal Quantity

The quantity that maximizes a firm or individual's net benefit, often determined through cost-benefit analysis.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.

Negative Externalities

The cost that affects a party who did not choose to incur that cost, often associated with production or consumption of goods and services, such as pollution.

Underallocated

Refers to a situation where resources are not enough or not effectively distributed for the production of goods and services, leading to inefficiencies.