If Individual X Has Comparative Advantage in Painting and Individual

question 220

Multiple Choice

If individual X has comparative advantage in painting and individual Y has comparative advantage in carpentry, then

• A) individual X must use fewer hours to paint a fence than individual Y.
• B) individual Y will specialize in painting.
• C) there is a lower opportunity cost (expressed in units of carpentry) for individual X to paint than for individual Y to paint.
• D) specialization will not occur, since each does not have a clear absolute advantage.

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Definitions:

Preferred Solution

A desired outcome or choice from among a set of alternatives in decision-making or problem-solving.

Concessions

Compromises or allowances made by one party in a negotiation, often to achieve a mutual agreement or understanding.

Expanding The Pie

A negotiation strategy aimed at finding solutions that allow all parties to gain more than they initially anticipated.

Preconceptions

Pre-existing opinions, biases, or ideas about something or someone before actual experience or knowledge.