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:

Significance Level

A threshold within hypothesis testing that determines whether to reject the null hypothesis, often denoted by alpha (α) and representing the probability of a Type I error.

Kilometres

A unit of length in the metric system equal to 1,000 meters, commonly used to measure distances between geographical locations.

Mean Number

The average value of a set of numbers, calculated by dividing the sum of all numbers by the count of those numbers.

Significance Level

In hypothesis testing, the threshold below which the p-value must fall for the results to be considered statistically significant, commonly set at 0.05.