Economic Analysis Suggests That Gains from Specialization and Exchange

question 81

Multiple Choice

Economic analysis suggests that gains from specialization and exchange

• A) will not be realized unless a central planning authority requires that all goods be produced by the low opportunity cost supplier.
• B) will be realized if individuals are allowed to pursue goals that are in their own self-interest.
• C) will not be realized unless business firms employ economists when making decisions about the proper combination of resources to utilize in the production process.
• D) will be realized if individuals place the public interest above the pursuit of their own self-interest.

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Definitions:

Nature-Nurture Controversy

The debate over the relative contributions of genetics (nature) and environment (nurture) to the development of individual characteristics and behaviors.

Heredity

The passing of traits from parents to offspring through genes.

Nutrition

The process of providing or obtaining the food necessary for health and growth.

Chronosystem

The environmental changes that occur over time and have an effect on the child.