The Benefit of a One-Unit Increase in an Activity

question 315

Multiple Choice

The benefit of a one-unit increase in an activity

• A) is called marginal cost.
• B) is always greater than the opportunity cost of that activity.
• C) decreases as you do more of it.
• D) is measured by what you must give up.
• E) is called rational-choice benefit.

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Definitions:

Explained Variation

The portion of the total variation in a dataset that is accounted for by the model's predictor variables.

Independent Variables

Variables in a statistical or mathematical model that are manipulated or have their values set externally to observe or measure their effect on dependent variables.

Degrees of Freedom

The number of independent values or quantities which can vary in the calculation of a statistic.

Critical Value of F

The threshold value determined from an F-distribution, given a certain significance level, used in analysis of variance (ANOVA) to decide whether to reject the null hypothesis of equal variances.