A Person Who Has an Absolute Advantage in the Production

question 47

Multiple Choice

A person who has an absolute advantage in the production of all goods will

• A)have a comparative advantage in the production of only some goods and not others.
• B)produce all goods at the lowest opportunity cost.
• C)also have a comparative advantage in the production of all goods.
• D)not be able to gain from specialization and trade.
• E)not have a comparative advantage in the production of any goods.

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Definitions:

Norm Misperception

The phenomenon where an individual's understanding of the typical behaviors or attitudes of a group is inaccurately perceived.

Peer Influence

The effect that the attitudes, values, and behaviors of peers have on an individual's own attitudes, values, and behaviors, playing a crucial role in personal development and decision-making.

Reactance Theory

A psychological principle suggesting that people have an aversive reaction to restrictions on their personal freedoms, leading them to resist or do the opposite.

Social Learning Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.