Which of the Following Best Describes Comparative Advantage

question 23

Multiple Choice

Which of the following best describes comparative advantage?  

• A) the ability of an individual to specialize and produce a greater amount of some good than can another individual 
• B) the number of units of one good given up in order to acquire something else 
• C) the ability of an individual to produce a good at a lower opportunity cost than can another individual 
• D) the amount of labour a particular individual needs to produce a fixed amount of capital goods

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Definitions:

Owns

To have possession or control of something, typically property, rights, or obligations.

Intersection

In mathematics, the set of elements that are common to two or more sets.

Occurs

Happens or takes place.

Conditional Probability

The likelihood of one event happening when it's known that a different event has already taken place.