A Person Has a Comparative Advantage in an Activity Whenever

question 32

Multiple Choice

A person has a comparative advantage in an activity whenever she

• A)can perform the activity at a lower opportunity cost than another person.
• B)can do everything better than anyone else.
• C)has an absolute advantage in that activity.
• D)can do the activity in less time than anyone else.

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Definitions:

"Jurisdiction Over the Thing"

The court's authority to decide on issues related to property or subject matter within its geographical area.

Infinitely Inelastic

Describes a situation where the quantity demanded or supplied does not change regardless of price changes.

Economic Rents

The excess payment made to a factor of production over and above what is needed to bring that factor into production, often seen as a measure of market inefficiency.

Aggregate

A total sum or amount made up of distinct components, often used in economics to refer to total output or income.