Table 2-6 Table 2-6 Shows the Output Per Week of Week

question 209

Multiple Choice

Table 2-6
Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-6.Which of the following statements is true?

• A)Lucy has a comparative advantage in making both products.
• B)James has a comparative advantage in making both products.
• C)Lucy has a comparative advantage in making wagons and James in making tricycles.
• D)Lucy has a comparative advantage in making tricycles and James in making wagons.

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Definitions:

Independent Variables

Variables that are manipulated or categorized to determine their effect on dependent variables in an experiment or study.

Data Points

Individual pieces of factual information collected from measurements or observations, used for analysis or calculation in a study or survey.

Significance Level

A statistical measure that determines the threshold at which the null hypothesis of a test is rejected.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis, and it depends on the chosen significance level.