Which of the Following Statements Is FALSE

question 88

Multiple Choice

Which of the following statements is FALSE?

• A) Trade creation is always good for countries.
• B) Trade diversion is always good for countries.
• C) Regional trade agreements may cause welfare losses
• D) Regional trade agreements may cause welfare gains.

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Definitions:

Regression Model

A statistical technique that models and approximates the relationship between a dependent and one or more independent variables.

Nonlinear Relationship

A type of relationship between two variables where a change in one variable does not lead to a constant change in the other variable.

Stepwise Regression Analysis

A method of fitting regression models where the choice of predictive variables is carried out by an automatic procedure.

Independent Variables

Variables in an experiment or model that are manipulated or categorized to observe their effect on the dependent variable, without being affected by any other variable in the experiment.