A Person Has a Comparative Advantage in Activity X When

question 33

Multiple Choice

A person has a comparative advantage in activity X when that person's:

• A) opportunity cost of performing that activity is very high.
• B) ability to perform that activity exceeds that of all other people.
• C) government negotiates a favorable trade agreement.
• D) opportunity cost is lower than other trading partners.

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Definitions:

Beaver Pelts

Beaver pelts refers to the fur of beavers, which was highly sought after for the manufacture of hats and garments, especially in the 17th and 18th centuries, driving the North American fur trade.

Sioux

A group of Native American tribes and First Nations peoples primarily inhabiting the Great Plains of the United States and Canada.

French

Relating to the people, language, or culture of France.

Southeast

A geographical region of the United States that includes states like Alabama, Georgia, and Mississippi, known for its distinct culture and history.