There Are Two Goods, X and Y

question 9

Multiple Choice

There are two goods, X and Y. If the opportunity cost of producing good X is lower for Pam than for Gino, then

• A)Pam has an absolute advantage in the production of X.
• B)Gino has an absolute advantage in the production of Y.
• C)Pam has a comparative advantage in the production of X.
• D)Gino has a comparative advantage in the production of Y.
• E)C and D

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Definitions:

Two-Sided P-Value

The probability of observing an effect at least as extreme as the test statistic, considering both tails of the distribution in a two-sided test.

Identical Distributions

A statistical scenario where two or more probability distributions are the same across all outcomes, implying equal behavior and properties.

Wilcoxon Rank Sum Test

A nonparametric statistical test that compares two independent samples to assess whether their population mean ranks differ.

Observed Value

The actual value that is measured during an experiment or calculated from a dataset, as opposed to a theoretical expectation.