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:

Motivated Tactician

A model of social cognition that characterises people as having multiple cognitive strategies available, which they choose among on the basis of personal goals, motives, and needs.

Role of Thought

The importance or function of cognitive processes in understanding and reacting to the environment.

Recency Effect

Refers to the tendency to remember the most recently presented information best.

Later Information

Information that is received or processed after an initial set of data or facts, which can influence or alter understanding and decision-making.