Olivia Bakes Cakes and Andrew Grows Corn

question 11

Multiple Choice

Olivia bakes cakes and Andrew grows corn.Olivia and Andrew both like to eat cake and eat corn.In which of the following cases is it impossible for both Olivia and Andrew to benefit from trade?

• A)Olivia cannot grow corn and Andrew cannot bake cakes.
• B)Olivia is better than Andrew at baking cakes and Andrew is better than Olivia at growing corn.
• C)Olivia is better than Andrew at baking cakes and at growing corn.
• D)Both Olivia and Andrew can benefit from trade in all of the above cases.

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Definitions:

Self-determination

refers to the process by which a person controls their own life, making choices and decisions based on their preferences and interests without undue influence from others.

Incentive

A factor, often a reward or punishment, that motivates an individual to perform an action or behave in a specific manner.

Need

A requirement necessary for survival or well-being.

Drive

An internal motivational state that compels an organism to engage in behavior necessary to satisfy a physiological need.