A Person Has a Comparative Advantage in Producing a Particular

question 405

Multiple Choice

A person has a comparative advantage in producing a particular good if that person

• A) has higher productivity in producing it than anyone else has.
• B) can produce it at lower opportunity cost than anyone else can.
• C) has less desire to consume that good than anyone else has.
• D) has more human capital related to that good than anyone else has.

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Definitions:

Bill of Material

A comprehensive list detailing the raw materials, components, and assemblies needed to manufacture a product.

Product Development Strategies

Plans and methodologies adopted by businesses to create new products or improve existing ones.

Acquiring

The act of obtaining or gaining possession of resources, assets, or companies.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machinery, and devices.