Which Step in the Process of Factor Analysis Is Most

question 13

Multiple Choice

Which step in the process of factor analysis is most objective?

• A) Deciding which variables to study
• B) Extracting the factors
• C) Interpreting the factors
• D) Labeling the factors

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Definitions:

Gains from Trade

The net benefits that parties obtain by voluntarily exchanging goods or services in markets.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others.

Production Possibility Curve

A graph that shows the maximum number of possible units a company can produce of two products given a set of inputs, reflecting the trade-off and opportunity cost of producing one product over another.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.