Once a Country Has Lost Its Comparative Advantage in Producing

question 107

Multiple Choice

Once a country has lost its comparative advantage in producing a good, its income will be ________ and its economy will be ________ if it switches from producing the good to importing it.

• A)higher; less efficient
• B)higher; more efficient
• C)lower; less efficient
• D)lower; more efficient

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Definitions:

Quadratic Trend Model

A model used in time series analysis that represents data with a parabolic trend, implying that the rate of change is not constant but accelerates or decelerates over time.

Seasonal Indexes

Factors used to adjust data for seasonal effects, allowing for more accurate analysis of trends over time.

Trend Line

A graphical representation that shows the general direction or pattern in data over a period of time.

Least Squares

A mathematical approach used in regression analysis to minimize the sum of the squares of the differences between observed and predicted values.