According to the Law of Comparative Advantage, Both Individuals and Nations

question 224

Multiple Choice

According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by

• A) the high opportunity cost producer.
• B) the low opportunity cost producer.
• C) the producer who is able to hire workers at the lowest wage.
• D) the party that can complete the productive activity most rapidly.

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Definitions:

Saltwater

Water containing a significant concentration of salts, typically found in oceans and seas, as opposed to freshwater in lakes and rivers.

Diagram

A simplified drawing or plan that represents the components or workings of something, typically used to explain how it functions or is structured.

Freshwater

Water that has a low salt concentration, typically found in rivers, lakes, and streams, and essential for drinking, agriculture, and sanitation.

Diagram

A simplified drawing showing the appearance, structure, or workings of something, typically used to explain how it functions.