Suppose That Country a Is Twice as Good at Producing

question 79

Multiple Choice

Suppose that country A is twice as good at producing widgets as country B. If the currency of B is twice as valuable as the currency of A,

• A) the comparative advantage will be canceled out.
• B) trade will be an improved outcome for both A and B.
• C) the comparative advantage could possible be canceled out depending on how much it costs to produce the widget in country B.
• D) none of the above

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Definitions:

Degrees Of Freedom

A value, which is different for different statistical tests, that approximates the sample size or number of individual cells in an experimental design.

Degrees Of Freedom

The number of independent pieces of information upon which a statistical estimate is based, minus the number of parameters estimated.

Degree Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often related to the number of observations in a sample minus the number of parameters being estimated.

Group

A collection of individuals or items that are studied together in a research context, often to examine shared characteristics or effects of treatments.