Two Individuals Engage in the Same Two Productive Activities

question 79

Multiple Choice

Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?

• A) One individual's production possibilities frontier is steeper than the other individual's production possibilities frontier.
• B) One individual is faster at both activities than the other individual.
• C) One individual's opportunity costs are the same as the other individual's opportunity costs.
• D) None of the above is correct; one of the two individuals always will have a comparative advantage in at least one of the two activities.

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Definitions:

Mania

A mental state characterized by excessive excitement, energy, and euphoria, often seen in bipolar disorder.

Psychopathy

A personality disorder characterized by fearlessness; lack of empathy, guilt, and remorse; the use of deceit; and coldheartedness.

Fearlessness

A quality of being unafraid to face danger or challenges.

Cold-Heartedness

A lack of empathy or emotion towards others, often characterized by indifference or cruelty.