If the United States Decides to Convert Automobile Factories to Tank

question 61

Multiple Choice

If the United States decides to convert automobile factories to tank production,as it did during World War II,but finds that some auto manufacturing facilities are not well suited to tank production,then

• A)The production possibilities curve between tanks and automobiles will appear as a straight line.
• B)The production possibilities curve between tanks and automobiles will shift outward.
• C)Decreasing opportunity costs will occur with greater automobile production.
• D)Increasing opportunity costs will occur with greater tank production.

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Definitions:

Null Hypothesis

A statement used in statistics that suggests there is no effect or no difference, and any observed variance is due to chance.

Alpha

In statistics, alpha represents the significance level, the probability of rejecting the null hypothesis when it is actually true, often set at 0.05.

Alternative Hypothesis

The hypothesis that is tested against the null hypothesis in statistical hypothesis testing, representing a statement that indicates some effect or difference.

Critical Value

A threshold value in hypothesis testing that defines the boundary for rejecting the null hypothesis; it is determined by the chosen significance level.