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:

Social Loafing

The occurrence where people put in less effort towards attaining a goal while working in a team compared to when they are working individually.

Group Context

Refers to the environmental and dynamic variables that influence the behavior, attitudes, and effectiveness of a group's members.

Organization Teams

Groups within an organization that are formed around common goals, tasks, or responsibilities to achieve specific outcomes.

Quality Circles

Small groups of employees who meet regularly to solve problems and improve production in their area of work.