In the Accompanying Diagrams, Solid Lines Are Production Possibilities Curves

question 90

Multiple Choice

In the accompanying diagrams, solid lines are production possibilities curves, and the dashed lines are trading possibilities curves. The data suggest that

• A) West Lothian should specialize in, and export, beer.
• B) both countries will be better off if they do not engage in specialization and trade involving these two products.
• C) West Lothian should specialize in, and export, pizza.
• D) East Lothian should specialize in, and export, beer.

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Definitions:

Population Coefficient of Correlation

A statistical measure that indicates the strength and direction of a linear relationship between two variables within a whole population.

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A threshold in hypothesis testing that determines the probability of rejecting a true null hypothesis, often denoted as alpha.

Coefficient of Determination

The coefficient of determination is a statistical measure that quantifies the proportion of the variance in the dependent variable predictable from the independent variable(s) in a regression model.