Which of the Following Is Consistent with International Trade Theory

question 82

Multiple Choice

Which of the following is consistent with international trade theory?

• A) The United States needs trade restrictions to stay competitive.
• B) The United States has been falling behind Europe and Japan because its economy is too open.
• C) The standard of living within a country is a function of the economic strength of the economy and not of its relative position.
• D) A country should strive for comparative advantage in manufacturing.

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Definitions:

V(X + Y)

The variance of the sum of two random variables, considering both their individual variances and covariance.

V(X)

The variance of a random variable X, representing the expectation of the squared deviation of X from its mean.

V(Y)

The notation for the variance of a random variable Y, measuring the spread of its values.

Joint Probability

The probability of two events occurring together or at the same point in time.