A Person Has a Comparative Advantage in the Production of a Good

question 35

Multiple Choice

A person has a comparative advantage in the production of a good when they can produce the product at a(n) ________ opportunity cost compared to another person.

• A) higher
• B) increasing
• C) lower
• D) equal

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Definitions:

Wages and Benefits

The compensation given to employees for their labor including hourly or salaried pay and additional perks or advantages such as health insurance, retirement plans, and paid time off.

Norway and Denmark

Two separate sovereign countries in Northern Europe, known for their high standards of living and comprehensive social welfare systems.

European Countries

Nations located on the continent of Europe, each with its own distinct culture, government, and economy.

Global Compensation System

A centralized pay system whereby host-country employees are offered a full range of training programs, benefits, and pay comparable to those of a firm’s domestic employees but adjusted for local differences.