Which of the Following Is Not Correct

question 131

Multiple Choice

Which of the following is not correct?

• A)The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.
• B)The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X.
• C)The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing that good.
• D)The gains from specialization and trade are based not on comparative advantage but on absolute advantage.

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, that can be tested through experimentation or observation.

Desirable Feature

A trait or characteristic of a product, person, or concept that is attractive and makes it preferable.

P Value

A statistical measure that indicates the probability of obtaining the observed results of a study by chance alone, often used to test hypotheses.

Correlational Study

A research method that examines the relationship between two or more variables to determine whether and how they change together.