Refer to the Information Provided in Figure 19

question 49

Multiple Choice

Refer to the information provided in Figure 19.2 below to answer the questions that follow.
Figure 19.2
-Refer to Figure 19.2.the U.S.has

• A)a comparative advantage in producing trucks.
• B)an absolute advantage in producing trucks.
• C)a comparative advantage in producing cars.
• D)no comparative advantage in producing either cars or trucks.

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Definitions:

Behavioral Economists

Investigators who explore how various psychological, cognitive, emotional, cultural, and social factors determine the economic decisions of both individuals and organizations.

Time Inconsistency

A situation where a person's preferences change over time in such a way that what is preferred at one point in time is inconsistent with what is preferred at another time.

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate resources in the midst of scarcity and the effects of these decisions on markets and the economy.