In a Small European Country,it Is Estimated That Changing the Level

question 130

Multiple Choice

In a small European country,it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million.What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $12 million,assuming no technological change and no change in the hours of work?

• A)GDP would increase further,but by less than $1 million.
• B)GDP would increase further by exactly $1 million.
• C)GDP would increase further by more than $1 million
• D)GDP would increase further by exactly $4 million.

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Definitions:

Independent Samples

Samples that are collected from populations such that the selection of a sample does not influence the selection of the other.

Population Means

The average of a set of values in a population, representing the central tendency of the population data.

Sample Mean Difference

The difference between the mean values of two samples, used in statistical testing to compare two groups.

T-Test

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