The Law of Comparative Advantage Says That a Person Should

question 150

Multiple Choice

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

RRSP

Registered Retirement Savings Plan, a retirement savings and investing vehicle for employees and the self-employed in Canada that provides tax benefits.

Contributions

Payments or investments made into a scheme, plan, or project by individuals or entities.

Compounded Monthly

A procedure where interest calculations are done monthly, taking into account not only the initial principal sum but also the interest accrued over prior periods.

Beginning of Each Month

The first day of each month in a calendar year.