When One Person's Opportunity Cost of Producing a Good Is

question 43

Multiple Choice

When one person's opportunity cost of producing a good is lower than another person's opportunity cost of producing the same good, it is called

• A) a comparative advantage.
• B) a tradeoff.
• C) specialisation.
• D) an absolute advantage.
• E) production possibilities.

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Definitions:

Regressive Tax

A tax system that imposes a higher percentage rate of taxation on low-income earners than on high-income earners.

Fixed Dollar Amount

A specific, unchanging sum of money that does not vary with circumstances, often used in contracts or financial agreements.

Tax

A mandatory financial charge or levy imposed by a government on individuals or corporations to fund government spending and public expenditures.

State and Local Government

Various levels of government beneath the federal level, including states, cities, and counties, responsible for local governance and policy implementation.