Suppose That a Worker in Country a Can Make Either

question 56

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. For a worker in Country A, the trade-off of making one tomato is:

• A) 2 bananas.
• B) 3 bananas.
• C) 4 bananas.
• D) 5 bananas.

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Definitions:

Dummy Variables

Binary variables used in regression models to represent categorical data, where the values 0 and 1 indicate the absence or presence of some categorical effect.

Qualitative Variable

A categorical variable that represents types or categories and can be described by names or labels.

High School

An educational institution that provides secondary education, typically for students aged 14 to 18 years old.

Regression Model

A statistical technique that models and analyzes the relationships between a dependent variable and one or more independent variables, used to predict the outcome of the dependent variable.