Use the Following to Answer Question

question 50

Multiple Choice

Use the following to answer question :
-(Table: Fish and Coconut Production Possibilities) Use Table: Fish and Coconut Production Possibilities.The table shows the maximum number of fish and coconuts that Tom and Hank can produce if they produce only one good.In the absence of trade,Tom produces and consumes nine fish and two coconuts,and Hank produces and consumes three fish and two coconuts.Now they decide to engage in trade.Which statement is INCORRECT?

• A) For both to become better off,each should specialize in the production of some good.However,since Hank is equally productive in both goods,it doesn't matter which good each specializes in.
• B) For both to become better off,each should specialize completely in the production of the good in which he has a comparative advantage.
• C) After trade,it is possible for Tom to consume 9 fish and 2.5 coconuts and for Hank to consume 3 fish and 2.5 coconuts.
• D) For each individual,the consumption point after trade will lie outside that individual's production possibility frontier.

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Definitions:

Sensation Seeker

A person who seeks out new and different sensations, experiences, and risks to achieve a heightened sense of excitement and adventure.

Arousal Theory

Arousal Theory suggests that people are motivated to engage in behaviors that help them maintain an optimal level of arousal, balancing between stimulation and relaxation.

Personal Frustration

The feeling of dissatisfaction or disappointment arising from obstacles that hinder one's goals or desires, often leading to stress or conflict.

Self-determination Theory

A theory of motivation that is concerned with supporting our natural or intrinsic tendencies to behave in effective and healthy ways.