A Person Has a Comparative Advantage If

question 97

Multiple Choice

A person has a comparative advantage if

• A) she can produce everything more cheaply than her co-worker can
• B) she can produce everything at a faster rate than her co-worker can
• C) she can produce a good with a smaller opportunity cost than her co-worker can
• D) she sees through corporate and government manipulation
• E) she gets rich through inheritance

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Definitions:

Sales Price

The amount of money for which a product or service is sold to a customer.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including expenses, purchases, and investments.

Merchandise Purchases

The buying of goods for resale, specifically those goods bought by a retailer to be sold to customers.

Operating Expenses

Ongoing costs for running a product, business, or system that do not include cost of goods sold but can include items like salaries and utilities.