The Change in Total Utility Resulting from a Unit Change

question 2

Multiple Choice

The change in total utility resulting from a unit change in the consumption of a good or services is called

• A) Absolute utility
• B) Diminishing marginal utility
• C) Marginal utility
• D) None of the above

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Definitions:

Type I Error

The probability of rejecting the null hypothesis when it is actually true, also known as a false positive.

Type II Error

A statistical mistake of failing to reject a false null hypothesis; also known as a false negative.

1 - β

The power of a statistical test, representing the probability of correctly rejecting the null hypothesis when it is false.