Figure 1.1 -A Person Has a Comparative Advantage in Producing a Good

question 5

Multiple Choice

Figure 1.1

-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 less 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:

Stratification

The structuring of inequalities within a society, often based on class, race, gender, or other socio-economic indicators, that places individuals and groups into different tiers of advantage or disadvantage.

Social Mobility

The ability for individuals or groups to move within a social hierarchy, which can be upward or downward, and is influenced by factors like education, income, and social connections.

2008 Recession

A severe global economic downturn that began in 2008, triggered by the collapse of the U.S. housing market and resulting in significant financial crisis, unemployment, and loss of wealth worldwide.

Upward Mobility

The ability for an individual or group to improve their social status, often measured by changes in income, occupation, or education.