The Law of Comparative Advantage Says That

question 102

Multiple Choice

The law of comparative advantage says that:

• A)the individual with the lowest opportunity cost of producing a particular good should produce it.
• B)comparative advantage exists only when one person has an absolute advantage in the production of two goods.
• C)whoever has a comparative advantage in producing a good also has an absolute advantage in producing that good.
• D)whoever has an absolute advantage in producing a good also has a comparative advantage in producing that good.
• E)gains from trade are possible only when one person has a comparative advantage in producing both goods.

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Definitions:

Constitutionally Bound

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Veto Power

The authority possessed by a person or body to unilaterally stop or reject a legislative act or decision.

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The national legislative body of the United States, consisting of two houses: the Senate and the House of Representatives.

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