Which of the Following Is a Statement That Supports the Theory

question 15

Multiple Choice

Which of the following is a statement that supports the theory of comparative advantage?

• A) International trade is a zero-sum gain where one nation's gain is another's loss.
• B) Domestic industries are at risk when a country engages in free trade.
• C) A country should maintain trade surplus to succeed in global trade.
• D) Global production is greater with free trade than it is with restricted trade.

---

Definitions:

Null Hypothesis

A hypothesis that assumes no significant difference or effect, serving as the default assumption in hypothesis testing.

Type I Error

The mistake of rejecting a true null hypothesis, also known as a "false positive".

Type II Error

A statistical error that occurs when the null hypothesis is not rejected when it is false, also known as a "false negative" finding.

Level Of Significance

The threshold probability used in hypothesis testing to determine if the null hypothesis can be rejected, typically denoted by alpha (α).