A person has a comparative advantage in an activity whenever she
A) has an absolute advantage in the activity.
B) can perform the activity at a lower opportunity cost than another person can.
C) can do the activity in less time than anyone else.
D) can do everything better than anyone else.
B
You might also like to view...
The Federal Reserve
a. issues new government bonds to finance budget deficits b. issues bonds for the U.S. Treasury c. buys and sells already-existing bonds d. increases the money supply by selling bonds e. raises and lowers tax rates and disburses money for government purchases and transfer payments
Which of the following would cause the aggregate demand curve to decrease, ceteris paribus?
a) An increase in income taxes. b) An increase in the value of the stock market. c) Strong performance of foreign economies. d) A decrease in interest rates.