Belarus Has a Comparative Advantage in the Production of Linen

question 172

Multiple Choice

Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade, which of the following is correct?

• A)Belarus should export linen to Russia.
• B)Russia should export linen to Belarus.
• C)For these two countries, trading linen would be a "stand-off" so they should trade another product.
• D)Without additional information about Russia, this question cannot be answered.

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Definitions:

Fitness Program

A planned regime of physical activities designed to improve and maintain one's health and physical condition.

F-test Statistic

A ratio of variances used in hypothesis testing to compare statistical models or variances across groups.

Population Variances

The measure of how data points in an entire population are spread out.

Population Variances

Measures of the dispersion of a population data set, reflecting how much the members of the population differ from the population mean.