Which of the Following Best Describes Comparative Advantage

question 29

Multiple Choice

Which of the following best describes comparative advantage?

• A)Using the fewest number of resources to produce a given amount of output.
• B)It is the same as absolute advantage.
• C)Being able to produce more output than any other country.
• D)Forgoing the fewest units of one product to produce a unit of another product.
• E)Having the largest number of resources compared to other countries.

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Definitions:

Factor's Price

The price paid for the use of a factor of production, such as labor, land, or capital.

Final Product

A good or service that has completed the production process and is available for sale to the end consumer.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, such as labor or capital.