Assume a Nation Has a Comparative Advantage in the Production

question 122

Multiple Choice

Assume a nation has a comparative advantage in the production of clothing. If the value of this country's currency rises, ______.

• A) its comparative advantage will increase
• B) its comparative advantage will stay the same
• C) its comparative advantage will decrease
• D) an absolute advantage will be created

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Definitions:

SPSS

Statistical Package for the Social Sciences, a software package used for data management and statistical analysis.

T Test

A statistical test used to compare the means of two groups and determine if they are significantly different from each other.

T Statistic

A type of statistic used in hypothesis testing, especially for small sample sizes, calculated to compare an observed sample mean to a theoretical population mean.

Straight-line Relationship

A linear connection between two variables, represented graphically by a straight line, indicating a constant rate of change.