A Person Who Has an Absolute Advantage in the Production

question 91

Multiple Choice

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

• A)have a production possibilities frontier with a constant slope.
• B)have a comparative advantage in the production of some goods but not in the production of others.
• C)also have a comparative advantage in the production of all goods.
• D)not be able to gain from specialisation and exchange.

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Definitions:

Distributive Bargaining

A negotiation strategy that involves a fixed amount of resources to be divided between parties, often resulting in a win-lose scenario.

Accommodating

The willingness to adapt one's behavior or decisions to meet the needs or preferences of others, often seen as a strategy for conflict resolution.

Integrative Negotiation

A negotiation strategy in which parties collaborate to find a win-win solution that satisfies the interests of all involved.

Distributive Bargaining

A negotiation strategy in which one party gains at the expense of another, often characterized by a competitive stance aiming to divide a fixed amount of resources.