According to the Law of Comparative Advantage, If a Firm

question 114

Multiple Choice

According to the law of comparative advantage, if a firm or a nation desires to maximize its output, each productive assignment should be carried out by those who

• A) have the highest opportunity cost.
• B) have the lowest opportunity cost.
• C) have an absolute advantage in the productive activity.
• D) can complete the productive activity most rapidly.

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Definitions:

Visual Preferences

Individual tendencies to favor certain visual stimuli over others, often influenced by personal experiences, culture, and genetics.

Core Knowledge Researchers

Scientists and psychologists focused on understanding how humans, especially infants, develop core domains of understanding about the world, such as physics, biology, and psychology.

Core Knowledge Theorist

A theorist who posits that humans are born with innate, domain-specific knowledge systems, such as for language and physics.

Violation-of-expectation

A research method used in developmental psychology to study infants' understanding of the world by observing their reactions to events that contradict their expectations.