Given Below Is the Production Possibilities Schedule for a Small

question 46

Multiple Choice

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3

-People (and all resources) :

• A)tend to specialize in those activities in which their opportunity costs are minimized.
• B)tend to specialize in those activities in which their opportunity costs are maximized.
• C)never consider opportunity costs before specializing in a particular activity.
• D)consider only direct costs while choosing to specialize in a particular activity.
• E)do not act in their own self-interest but specialize in those activities which benefit others.

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Definitions:

Mere Exposure Effect

A psychological phenomenon in which people tend to develop a preference for things merely because they are familiar with them.

Bystander Effect

A situation understood in social psychology where an individual's tendency to help decreases when they are not alone in noticing someone needs assistance.

Reciprocity Norm

A social rule that suggests individuals should return the favor or kindness that has been extended to them.

Social Scripts

Schemata or mental representations of sequences of actions within specific social contexts, guiding behavior in social situations.