Agnes Can Produce Either 1 Unit of X or 1

question 18

Multiple Choice

Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.

• A) Agnes has a comparative advantage in the production of Y.
• B) Brenda has a comparative advantage in the production of X.
• C) Brenda cannot gain from trade.
• D) Brenda has an absolute advantage over Agnes.

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Definitions:

Variance

A measure of the dispersion of a set of values, calculated as the average of the squared differences from the mean.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of a set of data points around their mean, indicating how spread out the data points are.

Mean

A measure of central tendency that is calculated by dividing the summation of all values in a data set by the number of values.

Laws Of Variance

Principles that describe how variance behaves in different statistical distributions and under various transformations.