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Suppose the U

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Suppose the U.S.can produce 10 units of food and 5 units of clothing (or any such linear combination)and Canada can produce 6 units of food and 4 units of clothing (or any such linear combination).If trade occurs between these two countries,which should produce more food and which more clothing?


Definitions:

Observational Study

A research method in which the subjects are observed in their natural setting without any manipulation by the researcher.

Correlational Study

A research method used to determine the relationship between two variables, without inferring a cause-and-effect relationship.

Directionality Problem

An issue in correlational studies where it is unclear which variable causes changes in the other.

Third Variable Problem

A challenge in research where a correlation between two variables may be explained by the presence of a third variable that influences both.

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