Basket of Goods a Is on an Indifference Curve That

question 66

Multiple Choice

Basket of goods A is on an indifference curve that lies further from the origin than basket B. From this we know that

• A) the prices of the goods in A are more than the prices of the goods in B.
• B) the satisfaction from consuming A is more than the satisfaction from consuming B.
• C) the marginal utility from consuming A is more than the marginal utility from consuming B.
• D) all other consumers would also rank B above A.

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Definitions:

Significance Level

The significance level, often denoted as alpha, is the probability of rejecting the null hypothesis in a statistical test when it is actually true, representing the risk of a type I error.

Type I Error

The error made when a true null hypothesis is incorrectly rejected, often referred to as a "false positive."

P Value

The probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is true.

Confidence

The degree of certainty or trust in a statistical or experimental result, often expressed as a confidence interval or level.