When a Person Possesses a Comparative Advantage in the Production

question 152

Multiple Choice

When a person possesses a comparative advantage in the production of one good or service,it:

• A) means that the person's opportunity cost is higher than for that of other goods.
• B) discourages specialization.
• C) promotes greater self-sufficiency.
• D) permits gains from trade to be realized due to a more efficient use of resources.

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Definitions:

Spiritual

Pertaining to, or affecting the human spirit or soul as opposed to material or physical things.

Physical

Referring to the bodily aspects or pertaining to the material world, often contrasted with the mental or spiritual.

Legal

Pertaining to the law or the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Social

Relating to society or its organization, or the interactions among individuals within a community.