When Mik Has an Absolute Advantage in the Production of Two

question 113

Multiple Choice

When Mik has an absolute advantage in the production of two goods over Tommy,Mik

• A) is less productive than Tommy.
• B) is better off if he does not engage in specialization and trade with Tommy.
• C) is more productive in producing both goods than Tommy.
• D) always has a comparative advantage over Tommy in the production of both goods.
• E) cannot gain from trade with Tommy.

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Definitions:

Extrinsic Rewards

Extrinsic rewards refer to tangible rewards given by an external source, such as money, prizes, or other benefits, used as motivation for performing certain tasks or behaviors.

Intrinsic Rewards

Non-material rewards that come from within an individual, such as personal satisfaction or joy from completing a task or learning something new.

Novel Ideas

Innovative or original thoughts and concepts that have not been previously conceived or fully explored.

Innovation

The process of developing and implementing new ideas in an organization.