The Principle of Comparative Advantage Essentially States That

question 182

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 increase 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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Definitions:

Delusions

Fixed false beliefs that are resistant to reason or confrontation with actual fact, often observed in psychiatric conditions.

Unfounded Beliefs

Ideas or opinions adopted without sound evidence or rational justification.

Schizophrenia

A chronic mental disorder characterized by distorted thoughts, perceptions, emotions, speech, and behavior.

Population

The total number of people or organisms in a particular area, community, or group considered collectively.