Tom and Don Have Different Opportunity Costs of Producing Two

question 138

Multiple Choice

Tom and Don have different opportunity costs of producing two goods.If Tom and Don specialize in producing the goods in which each has a comparative advantage and they exchange goods, then

• A)one of them will gain and one of them will lose.
• B)each will gain because each can consume a combination of goods that is outside his production possibilities frontier.
• C)each will produce a combination of goods that is outside his production possibilities frontier.
• D)they each lose because they are no longer able to produce and consume both goods.
• E)each will produce a combination of goods that is inside his production possibilities frontier.

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Definitions:

Abnormal Behavior

Actions or behaviors that deviate significantly from what is considered normal or typical.

Personal Distress

A negative emotional response individuals feel when witnessing others in distress, motivating them to alleviate both their own and others' suffering.

Function Normally

The ability of an organism, system, or mechanism to operate or perform within its expected parameters, without impairment or dysfunction.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association detailing criteria for diagnosing mental disorders.