Comparative Advantage Is

question 215

Multiple Choice

Comparative advantage is

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

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Definitions:

Freight

The charge imposed for the transport of goods by sea, air, or land.

Property, Plant, and Equipment

Property, Plant, and Equipment (PP&E) are tangible assets that are expected to be used in operations for more than one period.

Patent

An exclusive right to sell or produce one’s discovery or invention. A patent is good for 20 years.

Copyright

The exclusive right that is granted by the federal government to sell and reproduce literary, musical, or artistic works for a period of time.