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:

REM Sleep

A phase of sleep characterized by rapid eye movements, during which most vivid dreaming occurs; it plays a crucial role in emotional regulation and memory consolidation.

Postural Muscles

Muscles involved in maintaining the body posture and balance, typically engaged in a continuous, low-level contraction.

Brain Activity

The functioning and processes occurring in the brain, including neural responses and cognitive processes.

Breathing Rate

The number of breaths taken per minute, an important indicator of respiratory function and health.