An Increase in Lifetime Wealth Is Likely to

question 34

Multiple Choice

An increase in lifetime wealth is likely to

• A) increase current labour supply and increase current consumption demand.
• B) increase current labour supply and decrease current consumption demand.
• C) decrease current labour supply and increase current leisure.
• D) decrease current labour supply and decrease current consumption demand.
• E) decrease current labour supply and decrease current leisure.

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Definitions:

Type II Error

Occurs when a statistical test fails to reject a false null hypothesis; also known as a false negative.

Level Of Significance

A threshold in hypothesis testing that determines whether or not the null hypothesis can be rejected.

Null Hypothesis

A default premise stating no statistical significance or effect, used as a starting point for hypothesis testing to be either rejected or not rejected.

Z Statistic

A statistical measure that quantifies the distance (in standard deviation units) a data point is from the mean of a data set.