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Even If a Treatment Has No Effect,it Is Still Possible

question 63

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Even if a treatment has no effect,it is still possible to obtain an extreme sample mean that is very different from the population mean.What outcome is likely if this happens?


Definitions:

Labor Supply Curve

is a graphical representation showing the relationship between the amount of labor workers are willing to supply and the wage rate.

Substitution Effect

The economic principle that as prices rise, consumers will replace more expensive items with less costly alternatives.

Income Effect

The change in consumption resulting from a change in real income.

Theory of Consumer Choice

An economic framework describing how consumers make decisions to allocate their resources optimally among various goods and services.

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