In the Absence of Transportation Costs, Free Trade Results in the Equalization

question 20

True/False

In the absence of transportation costs, free trade results in the equalization of the prices of traded goods, as well as resource prices, in the trading nations.

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Definitions:

Correlational Methods

Research techniques that study the relationship between two or more variables without determining cause and effect.

Experimental Methods

Research strategies involving the manipulation of one variable to determine its effect on another variable, within a controlled environment, to establish cause-and-effect relationships.

Randomly Assign

The process of distributing participants in a study into different groups using random methods to ensure that each participant has an equal chance of being assigned to any group.

Variable

A characteristic or quantity that can vary or change within a study, research, or mathematical model.