Comparative Advantage Has Mixed Results When It Comes to Predicting

question 47

Multiple Choice

Comparative advantage has mixed results when it comes to predicting a country's trade patterns.Which of the following is FALSE?

• A)There are many potential products an economy might export that use the same comparative advantage.
• B)A large share of international trade is not based on comparative advantage.
• C)Comparative advantage has proven completely incapable of predicting trade.
• D)Comparative advantage is a dynamic concept, which means that the spread of technology, improvement in skills, and learning-by-doing may alter a country's comparative advantage over time.

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Definitions:

IQR

Interquartile Range, a measure of statistical dispersion, which is the difference between the 75th and 25th percentiles of the data.

Range

The difference between the highest and lowest values in a dataset, indicating the spread of the data.

Median

The middle value in a data set, which divides the set into two equal halves when the values are arranged in ascending order.

IQR

The Interquartile Range, which measures the spread of the middle 50% of a data set.