A Number of Econometric Studies Have Found Consistent Evidence of a Hump-Shaped

question 21

Multiple Choice

A number of econometric studies have found consistent evidence of a hump-shaped relationship between income levels and pollution levels. According to this, as an economy grows and income levels rise

• A) initially the pollution levels remain low.
• B) after a while, the pollution levels decrease.
• C) the pollution levels also rise in proportion to the economic growth.
• D) there is increasing industrialization, which leads to greater pollution.

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Definitions:

Z-Test Approximation

A statistical test used to determine if there are significant differences between means with known variance and a large sample size.

Two Independent Samples

A statistical method involving the comparison of two groups of data where the samples are collected independently of one another.

Larger Than 10

A description or condition referring to quantities or values that exceed the number 10.

Parametric Techniques

Statistical methods that assume the underlying data distributions have a specific form.