The Law of Comparative Advantage States That the Person Who

question 39

Multiple Choice

The law of comparative advantage states that the person who should produce a good is the person who

• A)has the lowest opportunity cost of producing that good
• B)can produce that good using the fewest resources
• C)will produce that good using the most expensive resources
• D)has the most desire for that good
• E)has produced that good in the past

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Definitions:

Cuba

An island nation in the Caribbean known for its significant cultural heritage, historical socio-political events, and current communist government.

American Expansionism

A policy and ideology that advocates for the territorial or economic expansion of the United States across North America and beyond, historically through methods such as colonization, annexation, and war.

Overseas Trade

The exchange of goods, services, and capital between countries across international borders or territories.