Which Statement Is True

question 7

Multiple Choice

Which statement is true?

• A)In a small country, if the world price is below the domestic no-trade price, the country has a comparative advantage in that good.
• B)In a small country, if the world price is above the domestic no-trade price, the country has a comparative disadvantage in that good.
• C)In a small country, if the world price is below the domestic no-trade price, the country has a comparative disadvantage in that good.
• D)Both a and b are true.
• E)None of the above statements above.

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Definitions:

Internal Consistency

Measures the reliability of a test based on the correlations between different items on the same test; it assesses the coherence of an instrument.

Licensure Exam

A standardized test required in many professions to ensure competence and to officially grant permission to practice in that field.

National Mean

A statistical average that represents typical or average performance or measurements across a nation.

Mean

The average of a set of numbers, calculated by adding them together and dividing by the number of values.