When a Person Possesses a Comparative Advantage in the Production

question 113

Multiple Choice

When a person possesses a comparative advantage in the production of one good or service, it:

• A)​means that the person's opportunity cost of producing that good or service is higher than for that of other goods.
• B)​discourages specialization.
• C)​promotes greater self-sufficiency.
• D)​permits gains from trade to be realized due to a more efficient use of resources.

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Definitions:

Leading

The act of guiding, directing, or influencing a group towards achieving its goals through effective decision-making and motivational strategies.

Straddle

A financial strategy involving the simultaneous purchase or sale of call and put options with the same expiration date and strike prices.

Lag Strategy

A business approach where the decision to increase capacity is delayed until demand has proven to sustain at a higher level.

Subcontractors

Third-party businesses or individuals hired to perform part of the work that was originally contracted by another company.