If Factors of Production Cannot Flow Between Countries

question 21

Multiple Choice

If factors of production cannot flow between countries

• A)there is no reason to expect that wages should be equal worldwide.
• B)multinational corporations would not exist.
• C)trade in goods could still occur.
• D)All of the above.

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Definitions:

Level of Confidence

The degree of certainty, often expressed as a percentage, that a parameter lies within a specified range of values.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

Interval Estimation

Estimation of a population parameter with a range, or interval, of values within which one has a certain degree of confidence the population parameter falls.

Confidence Interval

A collection of numerical indicators, derived from sampling statistics, believed to contain the estimations of an obscure population parameter.