Comparative Advantage Means the Ability to Produce a Good or Service

question 103

Multiple Choice

Comparative advantage means the ability to produce a good or service

• A)at a lower selling price than any other producer.
• B)at a lower opportunity cost than any other producer.
• C)of a higher quality than any other producer.
• D)at a higher profit level than any other producer.

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Definitions:

Pumice

Volcanic rock, especially of felsic or intermediate composition, containing many vesicles (holes) formed by expanding gases in magma.

Lava

Molten rock that has been expelled from a volcano during an eruption and solidifies as it cools on the Earth's surface.

Ash

Fine particles of rock, minerals, and volcanic glass created during volcanic eruptions and carried through the air.

Composite Cone

A type of volcano built from layers of lava flows, tephra, and volcanic ash.