Assume That Bulgaria Has a Comparative Advantage in Producing Sandals

question 34

Multiple Choice

Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria.We can conclude that

• A)Bulgaria also has an absolute advantage in producing sandals relative to Finland.
• B)Bulgaria has a lower opportunity cost of producing sandals relative to Finland.
• C)Finland has an absolute disadvantage in producing sandals relative to Bulgaria.
• D)labor costs are higher for sandal producers in Finland than in Bulgaria.

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Definitions:

Quasi-experimental

A research design that resembles an experimental design but does not include random assignment of participants to conditions or orders of conditions.

Correlational Studies

Research methods that examine the relationship between two or more variables to determine if a change in one variable is associated with a change in another.

Cause-and-Effect Conclusions

Reasoning that establishes a relationship between actions or events such that one or more are the result of the other or others; a fundamental principle in establishing scientific proof.

Validity

The degree to which a test, tool, or study accurately measures or reflects what it is intended to measure.