A Person Has a Comparative Advantage in Producing a Good

question 18

Multiple Choice

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

• A)can produce the good at a lower absolute cost than anyone else.
• B)can produce the good at a lower opportunity cost than anyone else.
• C)can do a better job than anyone else.
• D)spends more money in out-of-pocket expenses than anyone else.
• E)can produce the good at a higher opportunity cost than anyone else.

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Definitions:

Positively Correlated

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Scientific Method

A systematic, organized series of steps that helps ensure objectivity and consistency in exploring a social or scientific question.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Deductive Reasoning

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.