Total World Output Can Increase Without the Addition of Resources

question 164

Multiple Choice

Total world output can increase without the addition of resources if

• A)countries specialize in the product in which they have an absolute advantage and trade for products in which they have an absolute disadvantage.
• B)countries specialize in the product in which they have a comparative advantage and trade for products in which they have a comparative disadvantage.
• C)countries impose tariffs on the goods in which they have a comparative advantage.
• D)countries replace tariffs with quotas.
• E)countries replace quotas with tariffs.

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Definitions:

Randomized Block Design

An experimental setup that arranges subjects into blocks based on certain attributes before randomly assigning treatments, to reduce variation.

Treatments

In the context of experimentation, treatments refer to the different conditions applied to groups in an experiment to study their effects on outcomes.

Spearman's Rank Correlation

A non-parametric measure of rank correlation that assesses the strength and direction of association between two ranked variables.

Productivity

The rate at which goods or services are produced, often considered in terms of output per unit of input.