The Law of Comparative Advantage States That the Person Who

question 39

Multiple Choice

The law of comparative advantage states that the person who should produce a good is the person who

• A)has the lowest opportunity cost of producing that good
• B)can produce that good using the fewest resources
• C)will produce that good using the most expensive resources
• D)has the most desire for that good
• E)has produced that good in the past

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Definitions:

Industries

Sectors or categories of business activity focused on the production or delivery of goods and services.

Employer-Provided

Services or benefits offered to employees directly by their employer, such as health insurance, retirement plans, or transportation allowances.

Less Cost

Refers to a reduction in expenses or costs incurred by an organization or individual.

Direct Pay

Wages or salaries that employees receive directly from their employer as compensation for their labor.