When Two Countries Specialize in the Production of Different Goods

question 178

Multiple Choice

When two countries specialize in the production of different goods and trade with each other, it is most likely each country will

• A) export the goods in which it has a comparative advantage.
• B) export the goods in which it has an absolute advantage.
• C) import the goods in which it has a comparative advantage.
• D) import the goods in which it has an absolute advantage.

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Definitions:

Resamples

The process of drawing repeated samples from observed data, with the aim of estimating a population parameter.

Standard Error

A statistical measure that quantifies the variability or dispersion of a sample mean relative to the true population mean.

Sample Means

The average value of a set of samples, used as an estimate of the population mean in statistical analysis.

Bootstrap

A statistical method that involves drawing repeated samples from a set to estimate a characteristic of the population from which it was drawn.