The Theory of ________ States That a Nation Should Produce

question 305

Multiple Choice

The theory of ________ states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods from other nations that they produce more efficiently.

• A) comparative advantage
• B) absolute advantage
• C) mercantilism
• D) bilateral advantage

---

Definitions:

Two-Way ANOVA

A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable.

Interaction

A statistical term describing a situation in which the effect of one explanatory variable on the response variable depends on the level of another explanatory variable.

Main Effects

In statistics and experimental design, the direct impact of an independent variable on a dependent variable, disregarding interactions with other variables.

Profile Plot

A graphical representation that shows trends and interactions in data across different variables, typically used in multivariate analysis.