Which of the Following Is TRUE

question 32

Multiple Choice

Which of the following is TRUE?

• A)Adam Smith proposed the theory of comparative advantage as the basis for trade in The Wealth of Nations.
• B)David Ricardo proposed the theory of absolute advantage as the basis for trade.
• C)Absolute advantage is based on comparing the opportunity costs of trading partners.
• D)The Ricardian model assumes labor is perfectly mobile.

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Definitions:

Z-statistic

A numerical indicator that shows how a specific value compares to the average of a dataset, expressed as the number of standard deviations away from the mean.

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both sides of the sampling distribution, allowing for testing in both directions.

Z-statistic

A statistical measure that quantifies the distance (in standard deviation units) a data point is from the mean of a distribution.

Two-tailed Test

A statistical test that considers both directions of an effect, testing the possibility of relationships in both positive and negative directions.