An Efficient Allocation of Productive Inputs Requires That

question 24

Multiple Choice

An efficient allocation of productive inputs requires that:

• A)each output has the same rate of technical substitution among inputs used.
• B)each output has the same marginal rate of substitution for consumers.
• C)each pair of outputs has the same rate of product transformation.
• D)each individual has the same marginal rate of substitution between outputs.

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Definitions:

Type II Error

Deciding wrongly that there was no significant result when in fact there was.

Interval and Ratio

Levels of measurement in statistics where interval data has no true zero point and ratio data has a meaningful zero, allowing for comparison of ratios.

ANOVA

Analysis of variance. A comparison of the variance within groups with the variance among groups. See also MANOVA.

Multivariate

Pertaining to three or more variables, as in multivariate analyses or multivariate statistics.