Which of the Following Is Correct? Trade

question 177

Multiple Choice

Which of the following is correct? Trade

• A)Trade allows a person to consume at a point outside his production possibilities frontier.
• B)Trade limits a person's ability to produce goods and services on her own.
• C)Trade must benefit both traders equally.
• D)Trade is based on absolute advantage.

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Definitions:

Equity Theory

A concept in social psychology that posits individuals are motivated by fairness, and if they identify inequalities in the input-outcome ratios compared to others, it will result in work-related tensions.

Comparison Other

An individual or group used as a reference point for evaluation, often influencing self-perception and behavior.

Inequity

The perceived unfairness or imbalance in the distribution or treatment in social exchanges, leading to dissatisfaction and tension.

Outcomes

The results or effects that are a consequence of specific actions, processes, or behaviors.