If a Nation Has an Absolute Advantage in Producing a Good,then

question 136

Multiple Choice

If a nation has an absolute advantage in producing a good,then it

• A)will not have a comparative advantage in producing that good.
• B)will always specialise in that good.
• C)will have no need to trade with other nations.
• D)might or might not have a comparative advantage in producing that good.
• E)will have a comparative advantage in producing that good.

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Definitions:

Least Squares Estimate

A method of estimating the parameters in a statistical model by minimizing the sum of squared differences between observed and predicted values.

Slope

The measure of the steepness or incline of a line, often calculated as rise over run in the coordinate plane.

Dependent Variable

A variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.

Independent Variable

Variables in a study that are presumed to influence or determine the dependent variable, essentially the cause in a cause-and-effect relationship.