Consider Two Individuals, Jarek and Danuta Each of Whom Knits

question 1

Multiple Choice

Consider two individuals, Jarek and Danuta each of whom knits sweaters and makes hamburgers, respectively. The gains from trade between Jarek and Danuta are most obvious in which of the following cases?

• A)Jarek is very good at knitting sweaters and at making hamburgers, but Danuta's skills in both of these activities are very poor.
• B)Jarek and Danuta both are very good at making hamburgers, but neither has the necessary skills to knit sweaters.
• C)Jarek's cooking and knitting skills are very poor, and Danuta's cooking and knitting skills are also very poor.
• D)Jarek's skills are such that he can only knit sweaters, and Danuta's skills are such that she can only make hamburgers.

---

Definitions:

Z Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations.

Mean

The average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of the numbers.

Inferential Statistics

Involves making predictions or inferences about a population based on a sample of data.

Probability

A measure of the likelihood that a particular event will occur, usually expressed as a number between 0 and 1.