Absolute Advantage Is Based on Opportunity Cost

question 194

True/False

Absolute advantage is based on opportunity cost.

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Definitions:

Pleasure Principle

A psychoanalytic concept suggesting that people seek immediate gratification to fulfill their desires and avoid pain, without considering the consequences.

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it realistically, as opposed to the pleasure principle.

Ego

In psychoanalytic theory, it represents the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.