The Law of Comparative Advantage Says That a Person Should

question 91

Multiple Choice

The law of comparative advantage says that a person should produce a good if he or she:

• A)has the greatest desire to consume that good.
• B)has the lowest opportunity cost of producing that good.
• C)has an absolute advantage in a related activity.
• D)has a comparative advantage in a related activity.
• E)is equally good at producing this good as someone else is.

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Definitions:

Diabetes Insipidus

Chronic excretion of large amounts of urine of low specific gravity accompanied by extreme thirst; results from inadequate output of antidiuretic hormone.

ADH

Antidiuretic hormone, a peptide hormone produced by the pituitary gland that regulates water absorption in the kidneys.

Insulin

Protein hormone secreted from the pancreas that increases the uptake of glucose and amino acids by most tissues.

Medullary Interstitial Fluid

The fluid located in the interstitial space of the kidney medulla, playing a crucial role in the concentration of urine.