According to the Law of Comparative Advantage, Both Individuals and Nations

question 224

Multiple Choice

According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by

• A) the high opportunity cost producer.
• B) the low opportunity cost producer.
• C) the producer who is able to hire workers at the lowest wage.
• D) the party that can complete the productive activity most rapidly.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, elicits a conditioned response.

Classical Conditioning

A training mechanism in which two stimuli are frequently paired together; over time, the response that was originally caused by the second stimulus is elicited by the first stimulus.

Unconditioned Response

A reflexive, instinctual reaction to an unconditioned stimulus, not learned through previous experience.

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning, an essential concept in classical conditioning theories.