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Suppose That Spain Has a Comparative Advantage in Hats and Portugal

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Suppose that Spain has a comparative advantage in hats and Portugal has a comparative advantage in doormats. Under a system of free trade, each country specializes and then trades with the other. If the price starts at four hats per doormat, and then increases to five hats per doormat, then:


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Defective Items

Products that fail to meet quality standards.

Own a Car

Refers to the possession or ownership of an automobile by individuals or households.

Standard Deviation

A metric that quantifies how spread out a dataset is around its average, determined by taking the square root of the variance.

Mean Score

The arithmetic average of a set of numerical values, calculated by adding all the scores together and dividing by the number of scores.

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