Suppose That the Home Country in the Two­sector

question 115

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufactured output.
What is the effect on the return of land after trade
Occurs?

• A)The return on land increases.
• B)The return on land decreases.
• C)The return on land does not change.
• D)The effect cannot be determined.

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Definitions:

Z-statistic

A type of standard score that indicates how many standard deviations an element is from the mean, used in significance testing.

Significance Level

A threshold for determining whether a p-value indicates a statistically significant result, usually set at 0.05 (5%).

Nonparametric Tests

Statistical tests that do not assume a specific distribution for the data, making them suitable for analyzing ordinal data or when the assumptions for parametric tests are not met.

Nonparametric Statistical Methods

Statistical methods that do not assume a specific distribution for the data, often used when data doesn't meet the assumptions required for parametric tests.