Which of the Following Statements Is TRUE

question 122

Multiple Choice

Which of the following statements is TRUE?

• A)Some very talented people have a comparative advantage in everything they do.
• B)Some very untalented people have a comparative advantage in nothing they do.
• C)Some very talented people have a very low opportunity cost in everything they do.
• D)It is possible to have an absolute disadvantage but a comparative advantage in something.

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Definitions:

Surplus

Occurs when the quantity supplied of a product exceeds the quantity demanded at a given price, often leading to price reductions.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, usually intended to protect consumers from high prices.

Market Equilibrium

A state in a market where the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Binding Constraint

A restriction or limitation that significantly impacts decision-making or the feasibility of certain actions within an economic model or real-world scenario.