When a Person Has a Comparative Advantage in Producing a Good

question 88

Multiple Choice

When a person has a comparative advantage in producing a good or service,the person has

• A) a higher opportunity cost in producing that product than someone else.
• B) a constant opportunity cost in producing that product.
• C) a decreasing opportunity cost in producing that product.
• D) a lower opportunity cost in producing that product than someone else.
• E) an increasing marginal benefit in producing the good.

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Definitions:

Industrialized Nations

Countries with highly developed industries, advanced technological infrastructure, and high standards of living.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, with policies aiming to ensure the free movement of people, goods, services, and capital.

Member Countries

Refers to the nations that are part of an international organization or agreement.

Free Flow

A concept often related to logistics or operations management, referring to the movement of goods, services, or information without hindrance or delay.