When a Person Has a Comparative Advantage in Producing a Good

question 34

Multiple Choice

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

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

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Definitions:

Possesses

The act of having physical control or ownership of something, indicating a legal relationship between a person and the object being possessed.

Negotiability

The characteristic of a financial instrument that allows it to be transferred or assigned from one party to another, ensuring the receiving party obtains a good title.

Negotiable Instrument

A written order or unconditional promise to pay a fixed sum of money that is transferable from one party to another.

Movability

The quality of a negotiable instrument that ensures it is mobile and available.