Which of the Following Statements Is True

question 118

Multiple Choice

Which of the following statements is true?

• A) Free trade theory suggests that when trade takes place any gains made by one nation comes at the expense of another.
• B) If a hairdresser has a comparative advantage over the cleaner, she should do both: cutting hair and cleaning.
• C) According to the theory of comparative advantage, a nation should specialise in the production of those goods for which it has an absolute advantage.
• D) Specialisation allows nations to trade the surplus of their production.

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Definitions:

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer, often used in behavior modification and learning.

Primary Reinforcer

An innately reinforcing stimulus like food or drink, which does not require learning to become pleasurable.

Secondary Reinforcer

A stimulus that becomes reinforcing through its association with a primary reinforcer, not through its own inherent value.

Secondary Reinforcer

A stimulus that gains reinforcing qualities through being linked with a primary reinforcer.