Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A) Comparative advantage means that total world output will be greatest when each good is produced by the nation that has the highest domestic opportunity cost of producing it.
• B) Comparative advantage means that a nation can gain from trade only if it has a lower labor productivity than its trading partner.
• C) Specialization will be complete among nations when opportunity costs increase as the nations produce more of a particular product.
• D) Specialization will be less than complete among nations when opportunity costs increase as the nations produce more of a particular product.

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Definitions:

Confidence Interval

A variety of values, extracted from sample data, presumed to envelop the value of an unascertained population characteristic.

Mean Score

The average score obtained by adding all the individual scores in a set and dividing by the total number of scores.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter.

Standard Deviation

Indicates the dispersion or variability within a set of numerical values around their average.