A person has a comparative advantage in producing a good if:
a. that person can produce the good at a lower absolute cost than anyone else.
b. that person can produce the good at a lower opportunity cost than anyone else.
c. that person has a perfectly elastic demand curve for her good.
d. that person spends less on advertizements.
e. that person can produce the good at a higher opportunity cost than anyone else.
b
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When quantity supplied is more than quantity demanded:
a. supply shock b. shortage c. excess supply d. disequilibrium e. search costs
"Automatic stabilizers" played a part in reducing the length and severity of the recession of 1953-54 . Which of the following is an example of an "automatic stabilizer"?
a. Deficit spending by the federal government b. Spending on education by local and state governments c. Programs like unemployment insurance and Social Security d. Actions by the Federal Reserve aimed at reducing interest rates