A Possible Opportunity Cost of NOT Engaging in Free Trade

question 125

Multiple Choice

A possible opportunity cost of NOT engaging in free trade is

• A) a loss of domestic jobs.
• B) a smaller variety of goods and services.
• C) higher prices.
• D) economic growth.
• E) import tariffs.

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Definitions:

Significance Level

The threshold chosen by the researcher for rejecting the null hypothesis; commonly set at 0.05 or 5%.

Null Hypothesis

A default hypothesis that there is no difference or effect, used as a starting point for statistical testing.

Experimental Error

The variability in data that cannot be attributed to the variables being studied, often resulting from unknown or uncontrollable factors.

Null Hypothesis

A hypothesis that suggests there is no statistical significance in a set of given observations, indicating no effect or relationship.