Which Statement Is True

question 8

Multiple Choice

Which statement is true?

• A)A party has the comparative advantage in producing a good if it has the absolute advantage in producing the other good.
• B)If one party is more productive in producing both products, it has a comparative advantage in producing both goods.
• C)A party can have a comparative disadvantage in producing both goods.
• D)If parties specialize and trade, it is only the less productive party that can experience any gains from trade.
• E)None of the above statements are true.

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Definitions:

Divided Attention

Concentrating on more than one activity at the same time.

Mental Imagery

The process of creating visual representations in the mind, akin to visualizing scenarios or objects not currently present.

Rehearsal

The practice of repeatedly going over material or skills in order to learn or perfect them.

Encoding

The process by which information is transformed into a format that can be stored in memory.