If Tom and Di Specialize in Producing the Goods in Which

question 177

Multiple Choice

If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then _ .

• A) each will gain because each can consume a combination of goods that is outside her/his production possibility frontier
• B) one of them will gain and the other will lose
• C) each will produce a combination of goods that is within her/his production possibility frontier
• D) they will lose because they are no longer able to produce and consume both goods.

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Definitions:

Negative Transference

A psychological phenomenon where an individual projects feelings of negativity or hostility from past relationships onto a new person, often a therapist.

Behavioral Contracting

A therapy technique involving a written agreement between a therapist and a client outlining behavior change expectations and rewards.

Desensitization

The diminished emotional responsiveness to a negative, aversive or positive stimulus after repeated exposure to it.

Cognitive Behavior Therapy

A psychotherapeutic approach that addresses dysfunctional emotions, maladaptive behaviors, and cognitive processes through a number of goal-oriented, explicit systematic procedures.