Refer to the Information Provided in Figure 33

question 136

Multiple Choice

Refer to the information provided in Figure 33.1 below to answer the question(s) that follow. Figure 33.1
-Refer to Figure 33.1. Which of the following statements is true?

• A) Only Canada can benefit from trade because the United States has an absolute advantage in the production of both soybeans and alfalfa.
• B) Trade will benefit both countries because the United States has a comparative advantage in the production of soybeans and Canada has a comparative advantage in the production of alfalfa.
• C) Trade will benefit both countries because the United States has a comparative advantage in the production of alfalfa and Canada has a comparative advantage in the production of soybeans.
• D) Trade will benefit neither country because the United States has an absolute advantage in the production of both soybeans and alfalfa, but Canada has a comparative advantage in the production of both soybeans and alfalfa.

Understand and work with the concept of joint probability distributions.

Understand the concept of marginal probability distributions.

Apply the formulas for expectation and variance in practical contexts.

Understand the principle of independence between two random variables.

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Definitions:

Labor Hours

The total amount of time workers spend working in a given period, typically measured in hours per day, week, or year.

Isoquant

An isoquant is a curve that represents all the combinations of inputs that produce the same level of output in production theory.

Production Function

A mathematical representation that describes the relationship between inputs and outputs in the production process.

Output

The total amount of goods or services produced by a company or an economy.