When a Producer Has a Comparative Advantage at Producing a Good

question 60

Multiple Choice

When a producer has a comparative advantage at producing a good, it means the producer:

• A) can produce more of that good than others with the same number of workers.
• B) has the ability to produce the good at a lower opportunity cost than others.
• C) has no reason to trade with others.
• D) is efficient in production.

---

Definitions:

Working Memory Capacity

The amount of information a person can hold and manipulate in their working memory at one time.

Mental Processes

are activities of the mind involved in thinking, understanding, learning, and remembering.

Executive Control Functions

Cognitive processes including planning, working memory, attention, problem solving, verbal reasoning, inhibition, mental flexibility, task switching, and initiation and monitoring of actions.

Practical Intelligence

A form of intelligence related to the ability to solve everyday problems by utilizing experience-based knowledge.