Which of the Following Phenomena Can Be Explained by the Simple

question 77

Multiple Choice

Which of the following phenomena can be explained by the simple comparative advantage theory?

• A) A country that has a vast amount of farmland tends to export agricultural goods.
• B) A country with little skilled labor tends to export highly technical goods.
• C) A country tends to import the goods that it can produce at a lower opportunity cost.
• D) A country imports and exports the same goods.

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Definitions:

Random Numbers

Sequences of numbers generated in such a way that each number has an equal chance of being any value within the defined range, used in simulations and probabilistic calculations.

Expected Demand

An estimate of the quantity of a product or service that consumers will purchase in the future, often used for planning and inventory management.

Demand Probability

The likelihood that a specific level of demand will occur within a certain period.

Monte Carlo Simulation

An algorithm that utilizes multiple instances of random sampling to generate numerical outcomes, commonly applied in assessing risks and making decisions.