You Live on a Desert Island and There Is a Hurricane

question 142

Multiple Choice

You live on a desert island and there is a hurricane coming. After refusing to ride on the hurricane evacuation boat, being  stranded on a desert island is most similar to:

• A) negative punishment.
• B) response cost.
• C) time-out.
• D) Both a and c are correct.

---

Definitions:

International Specialization

The economic strategy where countries focus on the production and export of goods and services for which they have a comparative advantage.

Trading Possibilities Line

A line that shows the different combinations of two products that an economy is able to obtain (consume) when it specializes in the production of one product and trades (exports) it to obtain the other product.

Cost Ratios

These ratios compare different types of costs to each other or to sales in order to evaluate a company's financial efficiency and profitability.

Constant Costs

Costs that do not change in total with the level of activity or production volume, within a certain range of activity or period of time.