In Malopia,it Takes 10 Units of Resources to Increase Its

question 80

Multiple Choice

In Malopia,it takes 10 units of resources to increase its output of cocoa from 12 tons to 13 tons,but 11 units of resources to increase output from 13 tons to 14 tons,and 12 units of resources to increase output from 14 tons and 15 tons,and so on.Malopia's problem is an example of

• A)comparative advantage.
• B)diminishing returns to specialization.
• C)absolute advantage.
• D)mercantilism.
• E)Porter's diamond model.

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Definitions:

Intentional Misrepresentation

Deliberate false statement by one party aimed at getting another party to enter into an agreement.

Mutual Mistake

An error made by both parties in a contract that can render the agreement void.

Negligent Misrepresentation

A false statement of material fact made by a person who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances, typically used in legal contexts.