If Tom and Di Specialize in Producing the Goods in Which

question 185

Multiple Choice

If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then

• A) each will produce a combination of goods that is within her/his production possibility frontier.
• B) they will lose because they are no longer able to produce and consume both goods.
• C) each will gain because each can consume a combination of goods that is outside her/his production possibility frontier.
• D) one of them will gain and the other will lose.

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Definitions:

Fragmented

Describes something that is broken into parts, disorganized, or lacks cohesion.

Job Enlargement

A job design technique that increases the number of tasks associated with a job to reduce monotony and enhance employee engagement.

Core Job Characteristics

Fundamental attributes of a job that affect an employee's motivation, satisfaction, and performance, according to job design theory.

Skill Variety

The degree to which a job requires a range of different skills and talents to be performed effectively.