Comparative Advantage Emerges Because of the Presence Of

question 35

Multiple Choice

Comparative advantage emerges because of the presence of:

• A) trade.
• B) differing opportunity costs.
• C) marginal benefits equaling marginal costs.
• D) scarcity.
• E) incentives.

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Definitions:

Quantity of Labor

The total number of labor hours employed in the production of goods and services over a specific period.

Resource Use

Refers to the way in which human societies utilize natural resources to fulfill their needs and wants.