Given the Information in the Figure Above,Liz ________ Benefit from Trade

question 46

Multiple Choice

Given the information in the figure above,Liz ________ benefit from trade with Joe because ________.

• A) can; each of them has a comparative advantage in one of the goods
• B) can; each of them has an absolute advantage in one of the goods
• C) cannot; she has an absolute advantage in both goods
• D) cannot; she has a comparative advantage in both goods
• E) can; Joe is more productive in producing one of the goods

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Definitions:

Objective Methods

Techniques or procedures that are based on factual and measurable data, used to obtain unbiased results.

Psychoanalytic Theory

A theory of personality development and therapeutic framework that emphasizes unconscious motives and conflicts, developed by Sigmund Freud.

Humanist Theory

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual, often associated with concepts of free will and self-actualization.

Genetic Theory

A theory that explains traits, behaviors, and conditions primarily through the influence of genetic information and heredity.