The Free-Trade Doctrine Predicts That If Each Country Agrees to Specialize

question 39

True/False

The free-trade doctrine predicts that if each country agrees to specialize in the production of the goods and services that it can produce most efficiently, this will make the best use of global capital resources and will result in lower prices.

---

Definitions:

Conditional Probabilities

are the probabilities of an event occurring given that another event has already occurred.

Type Errors

Errors made in hypothesis testing where Type I error is rejecting a true null hypothesis, and Type II error is failing to reject a false null hypothesis.

Type I Error

The statistical error that occurs when the null hypothesis is incorrectly rejected when it is actually true.

Type II Error

The error of failing to reject a false null hypothesis, also known as a false negative error.