Some Firms Use Large Amounts of Capital and Small Amounts

question 45

Multiple Choice

Some firms use large amounts of capital and small amounts of labour, while others use small amounts of capital and large amounts of labour to

• A)use surpluses of labour and capital and eliminate unemployment of these resources.
• B)use the best available technology.
• C)use the resources that are most readily available.
• D)maximize profit.
• E)maximize production.

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Definitions:

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, matched samples, or repeated measurements on a single sample to assess differences in their population mean ranks.

Normal Approximation

The use of the normal distribution to approximate the distribution of sample statistics for large samples.

Continuity Correction

Continuity correction is an adjustment made to discrete data when applying a continuous probability distribution model, improving the approximation.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often denoted as H0, to be tested against an alternative hypothesis.