Belarus Has a Comparative Advantage in the Production of Linen,but

question 11

Multiple Choice

Belarus has a comparative advantage in the production of linen,but Russia has an absolute advantage in the production of linen.If these two countries decide to trade,

• A)Belarus should export linen to Russia.
• B)Russia should export linen to Belarus.
• C)trading linen would provide no net advantage to either country.
• D)Without additional information about opportunity costs,this question cannot be answered.

---

Definitions:

Prediction Equation

An equation used to predict the value of a dependent variable based on the values of one or more independent variables.

Multiple Regression

A statistical method leveraging various predictors to estimate the result of a dependent variable.

Stepwise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure.

Multicollinearity

Describes a situation in statistical models where independent variables are highly correlated, leading to difficulties in estimating separate effects.