A Type I Error Occurs When The

question 28

Multiple Choice

A type I error occurs when the:

• A) null hypothesis is incorrectly accepted when it is false
• B) null hypothesis is incorrectly rejected when it is true
• C) sample mean differs from the population mean
• D) test is biased

---

Definitions:

Imports

Goods or services brought into one country from another for sale or use.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than others.

Trade Deficit

The economic condition that arises when a country imports more goods and services than it exports.