Tom and Don Have Different Opportunity Costs of Producing Two

question 111

Multiple Choice

Tom and Don have different opportunity costs of producing two goods. If Tom and Don specialize in producing the goods in which each has a comparative advantage and they exchange goods, then

• A)they each lose because they are no longer able to produce and consume both goods.
• B)one of them will gain and one of them will lose.
• C)each will gain because each can consume a combination of goods that is outside his production possibility frontier.
• D)each will produce a combination of goods that is outside his production possibilities frontier.
• E)each will produce a combination of goods that is inside his production possibilities frontier.

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, and a strong sense of duty and responsibility.

Measure

A method or tool used to quantify or assess a particular variable or aspect, often for comparison, evaluation, or research purposes.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct it is intended to measure.

Psychological Test

Standardized measures designed to assess an individual's mental functions and behaviors, used in psychological and educational evaluations.