Specialization and Trade Are Closely Linked to

question 27

Multiple Choice

Specialization and trade are closely linked to

• A)absolute advantage.
• B)comparative advantage.
• C)gains to some traders that exactly offset losses to other traders.
• D)shrinkage of the economic pie.

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Definitions:

Perceived Behavioral Control

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Theory of Planned Behavior

A psychological theory that links beliefs and behavior, suggesting that an individual's intention to engage in a behavior is the principal determinant of whether they will do so, influenced by attitudes, subjective norms, and perceived behavioral control.

Dissonance Theory

A psychological theory suggesting that inconsistency among beliefs, attitudes, or behaviors causes discomfort, leading individuals to change them to reduce the discomfort.

Psychological Inconsistency

A state where an individual's thoughts, feelings, and behaviors do not align, leading to internal conflict.