Economic Theory States That Losing a Comparative Advantage at Producing

question 115

Multiple Choice

Economic theory states that losing a comparative advantage at producing one good means creating a comparative advantage at producing another. As an economy transitions from producing one good to producing another good:

• A) those who must transition from the production of one good to the production of another good may find the transition difficult in the short run.
• B) the transition can be seen as a success in the short run.
• C) outsourcing will always be good for every member of a society.
• D) no one will complain in the short run, but in the long run people may not like the transition.

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Definitions:

Preoperational Thinking

A stage in Jean Piaget's theory of cognitive development where children aged 2 to 7 years old think symbolically but are not yet able to perform operations, or reversible mental processes.

Physical Maturation

The process of reaching physical and biological growth and development, eventually achieving full adult size and functional capability.

Zone of Proximal Development

A concept in education and psychology referring to the difference between what a learner can do without help and what they can achieve with guidance.

Challenging Tasks

Tasks or activities that require significant effort and skill beyond current capabilities, promoting learning and development.