Comparative Advantage Is a Comparison Based on Opportunity Cost

question 55

True/False

Comparative advantage is a comparison based on opportunity cost.

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Definitions:

Supplies

Materials, equipment, or other items required for the operation of a business or the completion of a task.

Closed Systems

Systems that do not interact with the environment outside of themselves, limiting the exchange of matter or energy.

External Environment

Outside forces and conditions that influence the operations and outcomes of an organization or system.

Communes

Communities where people live and work together, often sharing common interests, property, possessions, and values, usually outside of mainstream society.