When Producing at a Point of Production Efficiency

question 66

Multiple Choice

When producing at a point of production efficiency,

• A)our choice of goods to produce can be either on or inside the production possibilities frontier.
• B)we can satisfy all our wants.
• C)the opportunity cost of producing goods other than those measured on the axes of the production possibilities frontier is zero.
• D)we face a tradeoff and incur an opportunity cost.
• E)resources are either unused or misallocated.

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Definitions:

ANOVA

Refers to Analysis of Variance, a statistical technique used to compare the means of three or more samples to find if at least one of them differs significantly.

T Test

A statistical test used to compare the means of two groups to determine if there is a significant difference between them.

F Ratio

The ratio of variance between groups to variance within groups in an ANOVA test, used to determine if there are significant differences between groups.

Variability

The measure of how much the scores in a data set differ from each other and from the mean.