One Advantage of the Specialization That Results from International Trade

question 8

Multiple Choice

One advantage of the specialization that results from international trade is that countries can take advantage of

• A) scale economies.
• B) taste reversals.
• C) production diversification
• D) smaller countries.
• E) lower transport costs.

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Definitions:

Normal Curve

A symmetric bell-shaped curve that represents the distribution of many types of data; most values remain near the mean and the frequencies decrease further from the mean.

Binomial Probability

The probability of obtaining a fixed number of successes in a set number of trials in an experiment with two possible outcomes.

Continuity Correction

A correction used in approximating a discrete distribution with a continuous one, especially in hypothesis testing with binomial distributions.

Normal Probability Distribution

A bell-shaped curve that represents the distribution of many types of naturally occurring data and is defined by its mean and standard deviation.