Use the Table Below to Answer the Following Question

question 55

Multiple Choice

Use the table below to answer the following question. The table outlines the production possibilities of Slavia and Italia for food and clothing. The law of comparative advantage suggests that

• A) neither country could gain from trade, even if the costs of transporting the products were zero.
• B) Italia could not gain from trade because it has an absolute advantage in producing both goods.
• C) both countries could gain if Italia traded food for clothing produced in Slavia.
• D) both countries could gain if Slavia traded food for clothing produced in Italia.

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Definitions:

Null Hypothesis

In statistical testing, the hypothesis that there is no effect or no difference, and any observed variations are due to chance.

Level Of Significance

The threshold below which a p-value must fall for an effect to be considered statistically significant, indicating the extent to which a test rejects the null hypothesis.

Confidence Interval

A statistical range, based on sample data, that is likely to contain the true population parameter with a specified level of confidence.

Segmentation Variable

A variable used to divide a population into distinct subgroups, based on specific characteristics, in order to target them more effectively.