Think About a Situation Where You Have a Test for a Virus.First,you

question 121

Essay

Think about a situation where you have a test for a virus.First,you are tested positive or negative.Second,you either really do have the virus or you don't.
a.If you actually have the virus but the test did not catch it,which error has been made and what is the impact of that error?
b.If you actually don't have the virus but the test says you did,which error is being made and what is the impact of this error?
c.Which error is the worst one to commit in this situation and why?

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Definitions:

Capital Flow

The movement of money for the purpose of investment, trade, or business production across international borders.

Industry's Short-run

A period in which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust to changes in market demand.

General Equilibrium

A state in which all parts of the economy (supply, demand, prices) are in balance and all markets are at equilibrium.

Market Equilibrium

A situation in which market supply and demand balance each other, and as a result, prices become stable.