Suppose That a Country's Factors of Production Are "Completely Specific

question 3

Multiple Choice

Suppose that a country's factors of production are "completely specific" to the industries In which they are located (i.e., factors in the X industry would contribute nothing to Y Output if they were employed in the Y industry and factors in the Y industry would Contribute nothing to X output if they were employed in the X industry) . In addition, Suppose that the country has an autarky P_X/P_Y that is greater than the world P_X/P_Y. In this
Situation, if the country is opened to international trade, it will

• A) export good X and will obtain "gains from specialization" (a "production gain") but not "gains from exchange" (a "consumption gain").
• B) export good X and will obtain "gains from exchange" (a "consumption gain") but not "gains from specialization" (a "production gain").
• C) export good Y and will obtain "gains from specialization" (a "production gain") but not "gains from exchange" (a "consumption gain").
• D) export good Y and will obtain "gains from exchange" (a "consumption gain") but not "gains from specialization" (a "production gain").

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Definitions:

Randomized Block Design

An experimental design that groups subjects into blocks to account for variability among them and then randomly assigns treatments within those blocks.

ANOVA Table

A table used in analysis of variance that summarizes the sources of variability in the data, including within-group and between-group differences.

Observations

Single observations or metrics gathered throughout a research project or experimentation process.

Levels

Distinct categories or stages that variables in an analysis or experiment can take.