When an Economy Operates Efficiently

question 88

Multiple Choice

When an economy operates efficiently,

• A)the MRPs of every input into the production of a good are equal.
• B)marginal utility equals marginal cost for every good.
• C)the price of a good equals the sum of the marginal physical products of its inputs.
• D)All of the above are correct.

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Definitions:

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both sides of the sampling distribution, allowing for testing in both directions.

Z-statistic

A statistical measure that quantifies the distance (in standard deviation units) a data point is from the mean of a distribution.

Two-tailed Test

A statistical test that considers both directions of an effect, testing the possibility of relationships in both positive and negative directions.

Significant

Denoting a result in statistical analysis that is likely not due to chance, thereby indicating a meaningful difference or correlation.