The Higher the Value for the Index of Intra­industry Trade

question 32

Multiple Choice

The higher the value for the index of intra­industry trade:

• A)the lower total trade is for other products.
• B)the greater percentage of trade in that good is intra­ industry.
• C)the more we should be concerned about job loss and outsourcing.
• D)the higher the gains from trade.

---

Definitions:

Chi-Square Distribution

A statistical distribution that is used to describe the distribution of the sum of squared random variables.

Critical Value

A point on the scale of a statistical distribution that marks the threshold for significant results.

Hypothesis Problem

A question that forms the basis for a hypothesis test, usually framed as the challenge of determining whether an observed phenomenon can be attributed to chance or not.

Population Variances

The variance calculated for a set of values that represents an entire population, providing a measure of its overall spread.