If One Person Has an Absolute Advantage in Producing Two

question 71

Multiple Choice

If one person has an absolute advantage in producing two goods, then that person _____

• A) must also have a comparative advantage in producing both the goods.
• B) cannot benefit from trade.
• C) cannot have a comparative advantage in producing either good.
• D) will have a comparative advantage in producing only one good.
• E) should specialize in the production of both the goods.

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Definitions:

Aversive Conditioning

A behavioral training technique where an undesirable behavior is paired with an unpleasant stimulus to reduce the behavior.

Unpleasant Event

An undesirable or negative occurrence that often leads to emotional discomfort or distress.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxiety by gradual exposure to the feared object or situation in conjunction with relaxation exercises.

Phobias

Intense, irrational fears of specific objects or situations that significantly affect a person's life.