Comparative Advantage Is the Ability to Produce

question 95

Multiple Choice

Comparative advantage is the ability to produce:

• A) a product at a lower opportunity cost than a trading partner can.
• B) more of a product than a trading partner with an equivalent amount of resources.
• C) an equal amount of a product as a trading partner can produce with an equivalent amount of resources.
• D) none of a product that a trading partner with an equivalent amount of resources can produce.

---

Definitions:

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Sensation Seeker

Someone who needs more arousal than the average person.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased cognitive activity and physical readiness.

Self-actualization

Fulfilling one's capabilities and realizing personal potential, regarded as an essential urge or demand within each person.