You Are Assigned to Learn the Following List of Words

question 92

Multiple Choice

You are assigned to learn the following list of words: bagel, bread, pie, cake, and turnover. I then ask you to tell me what words on a second list you remember from the first list. You add the word "donut" to the list. This is an example of the

• A)spreading activation model of memory.
• B)unconscious collusion hypotheses.
• C)confirmatory bias hypothesis.
• D)imagination inflation effect.

Identify conditions under which countries should specialize in the production of certain goods and engage in trade.

Calculate opportunity cost and understand its role in determining comparative advantage.

Recognize the benefits of specialization and trade for countries involved.

Analyze scenarios to determine which country has a comparative or absolute advantage in the production of specific goods.

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Definitions:

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.

Total Product Curve

A graphical representation showing how the total quantity of output changes with variation in the quantity of a single input, holding other inputs constant.

Marginal Returns

The additional output gained by adding one more unit of input, holding all other inputs constant.

Minimum Efficient Scale

The minimum efficient scale is the lowest point of production where a firm can achieve the economies of scale, reducing its cost per unit to the minimum.