If Wendy Can Produce More of All Goods Than Tommy

question 19

Multiple Choice

If Wendy can produce more of all goods than Tommy in an hour, then

• A) Wendy has a comparative advantage in all goods.
• B) Tommy has an absolute advantage in all goods.
• C) Only Tommy but not Wendy can benefit from trade between the two of them.
• D) Wendy does not need to trade with Tommy in order to achieve the gains from trade.
• E) Wendy has an absolute advantage in all goods.

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Definitions:

Crutchfield Situation

A technique used in social psychology experiments to study conformity, where individuals must make judgments while being exposed to the presumed opinions of others.

Asch Situation

An experiment by Solomon Asch that demonstrated the power of conformity in groups, where individuals often agree with a consensus even if it is clearly incorrect.

Asch Experiment

A series of psychological experiments conducted by Solomon Asch studying if and how individuals yield to or defy a majority group and the effect of such influences on beliefs and opinions.

Compliance

The act of conforming to a request, command, or set of regulations; this often involves adjusting one's behavior to align with societal or organizational standards.