What Occurs When a Person Possesses a Comparative Advantage in the Production

question 226

Multiple Choice

What occurs when a person possesses a comparative advantage in the production of one good or service?

• A) It promotes greater self-sufficiency.
• B) It permits gains from trade to be realized due to a more efficient use of resources.
• C) It discourages specialization.
• D) The person's opportunity cost becomes higher than for that of other goods.

---

Definitions:

Partnership

A legitimate form of commercial enterprise that involves shared management and profit distribution among two or more participants.

Owner

An individual or entity that possesses property, rights, or interests in an asset or item.

Capital Contribution

The funds, property, or other assets provided by owners or partners to a company for use in the business.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.