The Law of Comparative Advantage Says That a Person Should

question 91

Multiple Choice

The law of comparative advantage says that a person should produce a good if he or she:

• A)has the greatest desire to consume that good.
• B)has the lowest opportunity cost of producing that good.
• C)has an absolute advantage in a related activity.
• D)has a comparative advantage in a related activity.
• E)is equally good at producing this good as someone else is.

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Definitions:

Industrial

Related to the sector of the economy involving the manufacturing and production of goods, often characterized by the use of heavy machinery and automation.

Cultural Status

The recognition, respect, and honor a person or entity receives based on cultural norms and values within a society.

Residential Unity

A term that typically describes a living arrangement in which members of a family or group live together in one dwelling, emphasizing cohabitation and shared household responsibilities.