Which of the Following Is Not an Example of an Economic

question 173

Multiple Choice

Which of the following is not an example of an economic trade-off that a firm has to make?

• A) whether it is cheaper to produce with more machines or with more workers
• B) whether it is to outsource the production of a good or service
• C) whether or not consumers will buy its products
• D) whether it should produce more of its product

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Definitions:

Least Squares Regression

A method to estimate the coefficients of a regression line by minimizing the sum of the squares of the differences between observed and predicted values.

Coefficient of Determination

A statistical measure that determines the proportion of variance in the dependent variable predictable from the independent variable(s).

Coefficient of Correlation

This is a statistical measure that calculates the strength and direction of the relationship between two continuous variables.

Pre-Employment Examination

An evaluation or test given to a job applicant before hiring to determine suitability for the position.