According to the Theory of Comparative Advantage,a Country Gains from Foreign

question 86

Multiple Choice

According to the theory of comparative advantage,a country gains from foreign trade even though it may have an absolute advantage in the production of all products because ________.

• A) the country will forego producing its less efficient output in order to produce its more efficient output
• B) workers become more efficient through specialization
• C) economies of scale will reduce cost
• D) there will be more incentive to develop cost-saving technologies

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Definitions:

Sample Data

Sample data refers to a subset of a population selected for measurement, observation, or questioning, to provide statistical analysis.

Matched Pairs

A study design where each subject is paired with a similar subject, or the same subject is tested under different conditions, to reduce variability in the data.

Sample Values

Specific measurements or observations collected from a portion of a larger group or population for analysis.

Matched Pairs T-test

A statistical procedure that compares the average values of two connected groups to ascertain if the difference between them is significant from a statistical standpoint.