A Person Has a Comparative Advantage in Producing a Good

question 18

Multiple Choice

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

• A)can produce the good at a lower absolute cost than anyone else.
• B)can produce the good at a lower opportunity cost than anyone else.
• C)can do a better job than anyone else.
• D)spends more money in out-of-pocket expenses than anyone else.
• E)can produce the good at a higher opportunity cost than anyone else.

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Definitions:

Price Supports

Government interventions to hold the price of a commodity above market levels, usually to support the income of producers.

Sugar

A sweet-tasting, soluble carbohydrate used commonly as a sweetener in food and drinks.

Trade Barriers

Any regulation or policy that restricts international trade, including tariffs, quotas, and non-tariff barriers, aimed at protecting domestic industries.

Farm Programs

Government initiatives designed to provide financial support and stabilization to the agriculture sector through subsidies, price supports, and conservation efforts.