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:

Psychoanalysis

A method of psychological therapy originated by Sigmund Freud that emphasizes the exploration of unconscious conflicts and desires.

Exposure Therapies

Behavioral techniques, such as systematic desensitization and virtual reality exposure therapy, that treat anxieties by exposing people (in imaginary or actual situations) to the things they fear and avoid.

Mary Cover Jones

A pioneering psychologist known for her work in desensitization and conditioning.

Unconditional Positive Regard

A concept in psychology that suggests showing complete support and acceptance towards someone no matter what they say or do.