Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A) A self-sufficient country can, at best, consume on its production possibilities frontier.
• B) Only countries with an absolute advantage in the production of every good should strive to be self-sufficient.
• C) A self-sufficient country consumes outside its production possibilities frontier.
• D) Self-sufficiency is the road to prosperity for most countries.

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Definitions:

Riskier Decisions

Choices made under uncertainty that have potentially negative consequences, often involving higher stakes.

Group Polarization Effect

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed after group discussions.

Risky Decision

A risky decision involves making a choice when the outcomes are uncertain and potentially negative.

Cautious Decision

A decision-making process that involves careful consideration and evaluation of risks and benefits before taking action.