In Empirical Tests of the Linder Hypothesis for a Given

question 27

Multiple Choice

In empirical tests of the Linder hypothesis for a given test country, a finding that conforms to the hypothesis would be that the test country trades more intensely with countries in which per capita income is __________ the per capita income of the test country. If the test country does not trade with some countries that have similar per capita incomes to the test country and these other countries are excluded from the empirical test, then the results of the empirical test will be __________ confirmation of the Linder hypothesis.

• A) different from rather than similar to; biased against
• B) different from rather than similar to; biased toward
• C) similar to rather than different from; biased against
• D) similar to rather than different from; biased toward

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Definitions:

Proportioning Valve

A valve in a vehicle's brake system that modulates the pressure to the rear brakes to prevent them from locking up during braking.

Rear Wheel Lock-up

A dangerous condition where the rear wheels of a vehicle cease to rotate while in motion, often leading to loss of control.

Disc/drum System

A braking system combining both disc and drum brake technologies, typically with discs on the front wheels and drums on the rear.

Dual Circuit Hydraulic

A hydraulic system design that features two independent circuits for added safety and redundancy, often used in brake systems.