The Principle of Comparative Advantage States That Specialization Increases Productivity

question 93

Multiple Choice

The principle of comparative advantage states that specialization increases productivity, but the principle of increasing opportunity costs states that, when you increase production of a single good, you must use increasingly costly resources. These two principles:

• A) are evidence that economic theory is internally inconsistent.
• B) are an example of the difference between abstract models and the real world.
• C) cannot be true at the same time.
• D) together account for the outward bow shape of production possibility curves.

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Definitions:

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of human development.

Spermarche

A primary sex characteristic in males; a male’s first production of mature sperm, which signals the ability to reproduce sexually.

Andropause

Andropause describes the gradual decline in testosterone levels and its associated effects on men, often compared to menopause in women.

Androgens

Male sex hormones, such as testosterone, that are present in both males and females but usually at higher levels in males, affecting physical development and sexual features.