If an Economy Is Operating at a Point Inside the Production

question 231

Multiple Choice

If an economy is operating at a point inside the production possibilities curve,

• A) its resources are not being used efficiently.
• B) the curve will begin to shift inward.
• C) the curve will begin to shift outward.
• D) This is a trick question because an economy cannot produce at a point inside the curve.

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Definitions:

Null Hypothesis

In hypothesis testing, it's the presumption that no significant difference exists as a result of the experiment or intervention.

Significance

The likelihood that a result from data collected and analyzed is not due to chance. It’s often determined through the use of a p-value.

Null Hypothesis

A hypothesis that there is no significant difference or effect in a particular situation, used as a starting point for statistical testing.

Significantly Different

A term used to describe a result in statistical analyses indicating that observed differences or effects are unlikely to have occurred by chance.