Graph 3-2 These Figures Illustrate the Production Possibilities Available

question 131

Multiple Choice

Graph 3-2 These figures illustrate the production possibilities available to Amy and Jim with 8 hours of labour.
-According to Graph 3-2:

• A)Amy has an absolute advantage in both goods, and Jim has a comparative advantage in coffee
• B)Amy has an absolute advantage in both goods, and Jim has a comparative advantage in doughnuts
• C)Amy has an absolute advantage in coffee, and Jim has a comparative advantage in doughnuts
• D)Amy has an absolute advantage in doughnuts, and Jim has a comparative advantage in coffee

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Definitions:

Psychologists

Psychologists are professionals who study mental processes and behavior through research and observation to provide assessments, diagnosis, and treatment.

Behavior

The actions or reactions of an organism, typically in response to its environment.

Cognitive Dissonance

The mental discomfort experienced by a person holding two or more contradictory beliefs, values, or ideas.

Dissonance

A psychological or emotional state of tension resulting from conflicting attitudes, beliefs, or behaviors.