Comparative Advantage Is

question 29

Multiple Choice

Comparative advantage is

• A) the ability to perform an activity at a lower opportunity cost than anyone else.
• B) another name for absolute advantage.
• C) the ability to perform an activity at a zero opportunity cost.
• D) the ability to perform an activity at a higher opportunity cost than anyone else.

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Definitions:

Estimated Useful Life

The expected period over which an asset is anticipated to be used by a business.

Leasehold

An interest in an asset that gives the holder the right to use it for a specified period of time, typically relating to property or land.

Lessor

The party in a lease agreement who owns the asset and grants the lessee the right to use the asset for a specified period.

Lessee

The party in a lease agreement who uses or occupies the leased asset and is obligated to pay the lease payment to the lessor.