A Person Has a Comparative Advantage in Producing a Particular

question 16

Multiple Choice

A person has a comparative advantage in producing a particular good if that person

• A) has less desire to consume that good than anyone else has.
• B) has more human capital related to that good than anyone else has.
• C) can produce it at lower opportunity cost than anyone else can.
• D) has higher productivity in producing it than anyone else has.

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Definitions:

Policies

Guiding principles or courses of action adopted by an organization, government, or individual to achieve certain goals.

Stagflation

A situation in the economy where inflation and unemployment rates are high simultaneously.

Keynesian Demand Management

A strategy based on Keynesian economics that entails adjusting the level of demand in the economy through monetary and fiscal policy to manage economic cycles.

Economy Control

The use of various tools and policies by a government to regulate and oversee the economy’s health and stability.