A Person Has a Comparative Advantage in an Activity Whenever

question 160

Multiple Choice

A person has a comparative advantage in an activity whenever he or she

• A) has an absolute advantage in the activity.
• B) can perform the activity at a lower opportunity cost than can anyone else.
• C) can do the activity in less time than anyone else.
• D) can do everything better than anyone else.

---

Definitions:

External Control

Mechanisms imposed by external entities, such as regulations or laws, that influence or limit the behavior of organizations or individuals.

Personal Supervision

Direct oversight by an individual, typically a manager or supervisor, over the work and performance of subordinates.

Formal Administrative Systems

Structured processes and procedures used by organizations to manage and govern their operations.

Controlling

The management function that involves monitoring performance, comparing it with goals, and taking corrective action as needed.