In Order to Include Many Different Goods and Services in an Aggregate

question 53

Multiple Choice

In order to include many different goods and services in an aggregate measure, GDP is computed using, primarily,

• A)values of goods and services based on surveys of consumers.
• B)market prices.
• C)quantities purchased by a typical urban household.
• D)profits from producing goods and services.

---

Definitions:

Type II Error

The statistical mistake of failing to reject a false null hypothesis. It's also known as the error of accepting a false negative result.

Type I Error

Incorrectly refuting a correct null hypothesis, also labeled as a "false positive."

Null Hypothesis

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

Significance Level

A threshold for determining whether an observed effect is statistically significant, often set at 0.05.