The Principle of Comparative Advantage Says That

question 18

Multiple Choice

The principle of comparative advantage says that

• A) every individual should specialize in producing that good for which the absolute cost is the smallest
• B) the output of society as a whole will be the greatest if every individual specializes in producing that commodity for which his opportunity cost is the smallest
• C) monopoly power is gained by specializing in a large market and reducing costs
• D) monopoly power is gained by specializing in a small market and producing a differentiated product
• E) your financial investments should be "compared" in a common fashion to determine your maximum advantage

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Definitions:

Negative Reinforcement

A process in operant conditioning where a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without further conditioning.

Classical Conditioning

A training technique involving the recurrent pairing of two stimuli, leading to a reaction initially provoked by the second stimulus being ultimately provoked by just the first stimulus.

Cognitive Psychologists

Professionals who study mental processes such as "attention, language use, memory, perception, problem-solving, creativity, and thinking."