A Person Who Has an Absolute Advantage in the Production

question 253

Multiple Choice

A person who has an absolute advantage in the production of all goods will

• A) also have a comparative advantage in the production of all goods.
• B) have a production possibilities frontier with a constant slope.
• C) have a comparative advantage in the production of some goods but not in the production of others.
• D) not be able to gain from specialization and exchange.

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Definitions:

Bias

A systematic error or deviation from the truth in results or inferences, which can occur in the collection, analysis, interpretation, or review of data.

Resamples

The process of drawing repeated samples from a set of data with the aim of estimating a population parameter.

Bootstrap Estimate

A method of statistical inference where sampling distributions of statistics are estimated by sampling with replacement from the original dataset.

Trimmed Mean

A method of averaging that involves removing a specified percentage of the smallest and largest values before calculating the mean.