Which Short-Run Model Is Used to Study the Earnings of Resources

question 145

Multiple Choice

Which short-run model is used to study the earnings of resources?

• A) comparative advantage theory
• B) absolute advantage theory
• C) specific-factors model
• D) production possibility frontier

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Definitions:

Noncompensatory Decision

A decision-making process in which options are evaluated in a way that one attribute cannot make up for a disadvantage in another.

Compensatory Decision

A decision-making process where the consumer evaluates the positive and negative attributes of each alternative and makes a trade-off to arrive at a decision.

Unrealistically High

describes a level or amount that exceeds practical possibilities or reasonable expectations, often in context to prices or goals.

Marketers

Professionals responsible for promoting, selling, and distributing a product or service, including market research and advertising to reach potential consumers.