Differences in the Productivity of Labor Account for Comparative Advantage

question 26

Multiple Choice

Differences in the productivity of labor account for comparative advantage if:

• A)the minimum wage varies across the countries.
• B)the size of the domestic market varies across the countries.
• C)different countries have differences in labor hours required to produce each good.
• D)the strength of workforce varies across countries.
• E)the laborers are paid different wages in different countries.

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Definitions:

Measure of Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution.

Parameter

A numerical characteristic or measure that describes an aspect of a population.

Statistic

A single measure that is calculated from data to summarize or describe a characteristic of a sample.

Sample

A selection of individuals or items from a larger group or set that is used to gather and analyze data representative of the whole.