If Individual X Has Comparative Advantage in Painting and Individual

question 220

Multiple Choice

If individual X has comparative advantage in painting and individual Y has comparative advantage in carpentry, then

• A) individual X must use fewer hours to paint a fence than individual Y.
• B) individual Y will specialize in painting.
• C) there is a lower opportunity cost (expressed in units of carpentry) for individual X to paint than for individual Y to paint.
• D) specialization will not occur, since each does not have a clear absolute advantage.

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Definitions:

Motivation

The psychological process that arouses and directs goal-oriented behavior.

Perceived Inequity

A feeling or perception that one's inputs or contributions are not being rewarded or recognized fairly relative to others.

Theory X

Theory X is a management concept that assumes employees are inherently lazy and will avoid work if possible, suggesting the need for strict oversight and control.

Resistant to Change

The tendency to oppose or struggle against modifications to the status quo or established ways of doing things.