During the First 6 Months of 2008, the United States

question 41

Multiple Choice

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. Based on this, we know definitively that

• A) Africa, Asia, and Latin America have comparative advantage in coffee production.
• B) the U.S. has absolute advantage in coffee production.
• C) Africa, Asia, and Latin America have absolute advantage in coffee production.
• D) the U.S. has comparative advantage in coffee production.

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Definitions:

Second-order Polynomial

A polynomial of degree two, which can represent a parabolic trajectory or trend in data analysis.

Intercept Term

The intercept term in a regression model is the value of the dependent variable when all independent variables are equal to zero.

Coefficient

A steady or unvarying number that precedes and acts as a multiplier for the variable in algebraic expressions.

Predictor Variables

Variables in statistical models that are used to predict outcomes of interest.