If an Economist States That Not Enough of a Good

question 53

Multiple Choice

If an economist states that not enough of a good is being produced,she usually means that

• A) not everyone can afford the good.
• B) price exceeds marginal cost.
• C) consumer surplus equals zero.
• D) at equilibrium, some people who still wish to sell the good cannot find a buyer.

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Definitions:

Alternative Hypothesis

A hypothesis that directly contradicts the null hypothesis, suggesting that there is a significant effect or difference between groups or variables.

μ ≠ 3

Symbolic representation in hypothesis testing indicating that the population mean is not equal to 3, suggesting a two-tailed test.

Assumption

A basic condition that is accepted as true without proof in order to proceed with a calculation, argument, or analysis.

Non-directional Alternative Hypothesis

An alternative hypothesis that does not specify the direction of the expected difference or relationship, only that one exists.