A Person Has a Comparative Advantage in Producing a Particular

question 405

Multiple Choice

A person has a comparative advantage in producing a particular good if that person

• A) has higher productivity in producing it than anyone else has.
• B) can produce it at lower opportunity cost than anyone else can.
• C) has less desire to consume that good than anyone else has.
• D) has more human capital related to that good than anyone else has.

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Definitions:

Public Choice Theory

An economic theory that applies principles of economics to political science, analyzing how public decisions are made and how public officials behave.

Government Expenditures

The total amount spent by the government for its operations, projects, social welfare, and public services.

Gross Domestic Product (GDP)

The complete value, in terms of money or market, of all final products and services made inside a nation's boundaries over a certain time frame.

Collective Action

The pursuit of a goal or set of goals by multiple people or entities working together, often in the context of addressing public goods or common interests.