The Law of Comparative Advantage Says That a Person Should

question 150

Multiple Choice

The law of comparative advantage says that a person should produce a good if she

• A)has the greatest desire to consume that good
• B)has the lowest opportunity cost of producing that good
• C)has an absolute advantage in a related activity
• D)has a comparative advantage in a related activity
• E)is equally good at producing this good as someone else is

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