Which of the Following Statements Is True

question 45

Multiple Choice

Which of the following statements is true?

• A) An economic agent can have a comparative advantage in the production of all goods.
• B) The agent with the higher opportunity cost of producing a good has the comparative advantage in producing that good.
• C) There are mutually beneficial gains from trade if opportunity costs differ.
• D) An economic agent who has the absolute advantage in producing a good also has the comparative advantage in producing that good.

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Definitions:

Anorexia Nervosa

An eating disorder in which a person (usually an adolescent female) maintains a starvation diet despite being significantly underweight; sometimes accompanied by excessive exercise.

Schizophrenia

A psychiatric condition where there are impairments in thinking, sensing, emotional reactions, and interpersonal behaviors.

Taijin-Kyofusho

Taijin-Kyofusho is a Japanese term for a specific type of social anxiety disorder where individuals fear that their body or social behaviors will offend or embarrass others.

Susto

A cultural illness found in Latin America, characterized by symptoms of anxiety, apathy, and believed to be caused by a frightening event.