If the Opportunity Cost of Production Rises as More of a Good

question 14

Multiple Choice

If the opportunity cost of production rises as more of a good is produced,

• A)the terms of trade will be independent of opportunity costs
• B)the production possibilities curve will be a straight line
• C)a country will specialize in producing only those goods in which it has a comparative advantage
• D)a country should produce any good in which it has an absolute advantage
• E)a country may not specialize completely in the goods in which it has comparative advantage

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Definitions:

Interval Estimation

A range of values used to estimate a population parameter, typically expressed as a confidence interval.

Margin of Error

The range within which the true population parameter is expected to lie, with a certain level of confidence.

Confidence

In statistics, it often pertains to the degree of certainty or probability that a parameter falls within a specified range.

Population Variance

A measure of the spread of a distribution within an entire population, indicating how much the data differ from the mean.