A Person Has a Comparative Advantage in an Activity Whenever

question 282

Multiple Choice

A person has a comparative advantage in an activity whenever he or she

• A) can do everything better than anyone else.
• B) can do the activity in less time than anyone else.
• C) can perform the activity at a lower opportunity cost than can anyone else.
• D) has an absolute advantage in the activity.

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Definitions:

Organizational Expenses

Costs incurred during the formation of a corporation or organization, such as legal fees and registration charges.

Corporate Form

A legal structure for a business recognized as a separate legal entity from its owners, offering liability protection but with specific tax obligations.

Major Policy Decisions

Key strategic decisions made by a company's management or board of directors that affect the overall direction and policies of the organization.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policy and strategy.