Nation Statum Can Produce Either 800 Units of Chemicals or 1600

question 127

Multiple Choice

Nation Statum can produce either 800 units of chemicals or 1600 units of clothing.Nation Timin can produce either 200 units of chemicals or 800 units of clothing.

• A) Nation Statum has a comparative advantage in producing clothing.
• B) Nation Timin has a comparative advantage in producing chemicals.
• C) Nation Statum has a comparative advantage in producing chemicals.
• D) Nation Timin is the high-cost producer of clothing.
• Statum has the comparative advantage in producing chemicals because its opportunity cost is 2,while the opportunity cost in Timin is 4.The country with the lower opportunity cost has the comparative advantage.

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Definitions:

National Forest

Public lands set aside by the government for the purpose of preserving forested areas, supporting biodiversity, and regulating the use of natural resources.

Walnut Trees

Deciduous trees known for their production of walnuts, valued for their wood and nuts, grown in temperate regions worldwide.

Significance Levels

Statistical thresholds used to determine the probability of rejecting a null hypothesis, indicating the strength of evidence required to conclude that a result is statistically significant.

Confidence Levels

Measures the degree of certainty or the probability that a parameter lies within a specified interval under a given distribution.