The Principle of Comparative Advantage Essentially States That

question 82

Multiple Choice

The principle of comparative advantage essentially states that

• A)there are some goods for which the opportunity costs of production are the same regardless of who produces them.
• B)some goods have high opportunity costs and low absolute costs.
• C)specialization can reduce output rather than increasing it.
• D)total output of an economic system is greatest when each good is produced by those who have the lowest opportunity cost of producing the good.

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