When a Producer Has the Ability to Produce a Good

question 136

Multiple Choice

When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:

• A) has an absolute advantage at producing that good.
• B) has a comparative advantage at producing that good.
• C) has no reason to trade with others.
• D) is efficient in production.

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Definitions:

Internal Tension

A psychological state characterized by a conflict of emotions or impulses within an individual, often leading to stress or mental discomfort.

Motivation

The psychological force that drives individuals toward achieving goals and fulfilling needs.

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for achieving peak performance; too little or too much arousal can impair performance.

Moderate Arousal

A state of being that is neither too relaxed nor too excited, often considered optimal for specific types of performance or learning.