If One Person Has an Absolute Advantage in Producing Both

question 48

Multiple Choice

If one person has an absolute advantage in producing both of two goods,then that person:

• A)must also have a comparative advantage in both goods.
• B)cannot benefit from trade.
• C)cannot have a comparative advantage in either good.
• D)will have a comparative advantage in only one good.
• E)should specialize in the production of both goods.

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Definitions:

Punishment

A consequence given in response to an action or behavior deemed unacceptable or wrong, intended to discourage that behavior.

Psychic Agent

An entity or element within the psyche that is responsible for specific mental functions or activities, often discussed in psychoanalytic theory.

Cognitive Processes

Mental actions or operations that include thinking, reasoning, problem-solving, decision-making, and memory.

Equilibrium

A state of balance or stability arising from the equal action of opposing forces.