Along an Indifference Curve,if the MRS of Food (F)for Clothing

question 4

Multiple Choice

Along an indifference curve,if the MRS of food (F) for clothing (C) is 1F/2C,this means the consumer:

• A)has a stronger preference for clothes than for food.
• B)would be willing to give up 1 unit of food for 2 units of clothing,and would be better off with the exchange.
• C)would be willing to give up 1 unit of food for 2 units of clothing,but his or her total utility will not increase.
• D)would be willing to give up 2 units of food for 1 unit of clothing.

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Definitions:

Level of Significance

The level of significance is a threshold set by the researcher to determine the cutoff at which the null hypothesis can be rejected, commonly represented by alpha (α).

T-statistic

A statistical measure used to analyze the difference between two group means in relation to the variance observed within the groups.

Alpha

Alpha, often represented as α, is the threshold probability of committing a Type I Error, typically set at 0.05 or 5% in hypothesis testing.

T-statistic

The T-statistic is a ratio used in hypothesis testing that compares the difference between an observed sample mean and a known value, to the standard error of the mean.