George and Michael Can Gain from Exchange

question 394

Multiple Choice

George and Michael can gain from exchange

• A) if each specializes in the production of the good for which he has the lower opportunity cost.
• B) unless they have different opportunity costs.
• C) unless one has an absolute advantage in all goods.
• D) if each specializes in the production of the good for which he has the higher opportunity cost.

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Definitions:

Productive Way

An approach or methodology that results in effective and efficient achievement of goals, often emphasizing outcomes that are beneficial and constructive.

Temperament Differences

Refers to the variations in emotional and behavioral tendencies among individuals, often considered to be innate.

Cultures

The distinctive ideas, customs, social behaviors, and artifacts of a society or community.

Age Group

A classification of people based on their age, typically used for demographic, marketing, or study purposes.