If P(A) = 0

question 74

Multiple Choice

If P(A) = 0.62, P(B) = 0.47, and P(A or B) = 0.88, then P(A and B) = ________.

• A) 0.2914
• B) 1.9700
• C) 0.6700
• D) 0.2100

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Definitions:

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country possesses and can utilize for manufacturing goods and services.

Heckscher-Ohlin

A trade theory that suggests countries will export goods that utilize their abundant and cheap factors of production and import goods that utilize the countries' scarce factors.

Ricardian Trade Theory

An economic theory that suggests international trade is driven by comparative advantage, leading countries to specialize in the production of goods they can produce most efficiently.

International Product Life Cycle

A theory that suggests that the level of trade in a product at any given time is a function of the current stage in the product’s life cycle, in which the life cycle consists of introduction, maturity, standardization, and decline.