Constant Opportunity Costs Suggest That the Relative Cost of Producing

question 24

True/False

Constant opportunity costs suggest that the relative cost of producing one product in terms of the other will remain the same no matter where a nation chooses to locate on its production-possibilities schedule.

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Definitions:

Null Hypothesis

A hypothesis that assumes no significant difference or effect, serving as the default assumption in hypothesis testing.

Type I Error

The mistake of rejecting a true null hypothesis, also known as a "false positive".

Type II Error

A statistical error that occurs when the null hypothesis is not rejected when it is false, also known as a "false negative" finding.

Level Of Significance

The threshold probability used in hypothesis testing to determine if the null hypothesis can be rejected, typically denoted by alpha (α).