For Two Individuals Who Engage in the Same Two Productive

question 80

Multiple Choice

For two individuals who engage in the same two productive activities,it is impossible for one of the two individuals to

• A)have a comparative advantage in both activities.
• B)have an absolute advantage in both activities.
• C)be more productive per unit of time in both activities.
• D)gain from trade with each other.

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Definitions:

Output

The final product, result, or amount produced by a process, system, or activity.

Multicollinearity

A statistical phenomenon where two or more independent variables in a regression model are highly correlated, potentially affecting the reliability of the model’s coefficients.

T-Tests

Statistical tests used to compare the means of two groups or the mean of one group against a known mean.

F-Test

A statistical test used to compare the variances of two populations to see if they are significantly different.