Use the Following to Answer Question(s): Production Possibilities Schedule for Two

question 22

Multiple Choice

Use the following to answer question(s) : Production Possibilities Schedule for Two Commodities

-(Exhibit: Production Possibilities Schedule for Two Commodities) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of commodity X each country would have to forgo to produce the additional units of commodity Y indicated.Further assume that the only input is labor and that it remains fully employed.If there were unrestricted trade and specialization according to the law of comparative advantage:

• A) the United States would export X and import Y.
• B) Canada would export X.
• C) the United States would import both X and Y.
• D) Canada would import both X and Y.

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Definitions:

One Tailed

A type of hypothesis test where the region of rejection is on only one side of the sampling distribution, often used when making predictions in a specific direction.

Test Statistic

A quantity derived from sample data and used in statistical hypothesis testing to decide whether to reject the null hypothesis.

P-Value

The likelihood of witnessing outcomes in a test that are as extreme or more so than the observed ones, provided that the null hypothesis is accurate.

Randomized Block Experiment

An experimental design that aims to reduce the effects of variables known as blocks by randomly assigning treatments within each block.