The United States Produces Both Automobiles and Computers More Efficiently

question 114

Multiple Choice

The United States produces both automobiles and computers more efficiently than Mexico.Nevertheless, it is possible that both nations would benefit from trade in these items.The reason for this is

• A)the law of comparative advantage.
• B)the inflation-unemployment trade-off.
• C)externalities.
• D)the cost disease of personal services.
• E)attempts to repeal the law of supply and demand.

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Definitions:

Standardized Residual

The difference between the observed and predicted values, divided by the standard deviation of the residuals.

Standard Error

A statistic that measures the variability or precision of the sampling distribution of a statistic.

Autocorrelated

A characteristic of a series where subsequent observations in the series are correlated with one another.

Independent

Not influenced or controlled by others; having the freedom to act or function separately.