Thailand Has a Comparative Advantage in Rice and an Absolute

question 9

Multiple Choice

Thailand has a comparative advantage in rice and an absolute advantage in both rice and cell phones. Indonesia has a comparative advantage in cell phones. According to this scenario

• A) Indonesia should import both cell phones and rice.
• B) Thailand should export both cell phones and rice.
• C) Thailand should export rice and import cell phones.
• D) Indonesia should export rice and import cell phones.

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Definitions:

Durbin-Watson Statistic

A measure used in statistics to detect the presence of autocorrelation in the residuals from a linear regression analysis.

Hypotheses

Proposed explanations for a phenomenon, set forth as a basis for empirical testing.

First-Order Autocorrelation

A statistical measure of the relationship between a variable's current value and its immediate past value.

Durbin-Watson Statistic

A statistical method utilized to identify autocorrelation within the residuals of a regression analysis.