Use the Table Below, Which Outlines the Production Possibilities of Qatar

question 159

Multiple Choice

Use the table below, which outlines the production possibilities of Qatar and Botswana in wine and wheat, to answer the following question. The law of comparative advantage suggests that

• A)neither country would gain from trade, even if the costs for transporting the products were zero.
• B)Qatar would not gain from trade because it has an absolute advantage in producing both goods.
• C)both countries would gain if Botswana traded wine made in Botswana for Qatar's wheat.
• D)both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.

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Definitions:

Sample Size

The number of observations or subjects used in a study or sampled from a larger population for the purpose of statistical analysis.

Characteristic Curve

In statistics, it often refers to a graph that shows the relationship between the probability of a given outcome and different levels of a predictor variable.

Alternative Values

Different or other possible values or outcomes in a decision-making process.

Type II Error

The mistake of failing to reject a false null hypothesis, also known as a "false negative" finding in statistical tests.