Answer the following questions true (T) or false (F)
1. For a person to have a comparative advantage in producing a product, she must be able to produce that product at a lower opportunity cost than her competitors.
2. It is possible to have a comparative advantage in producing a good or service without having an absolute advantage.
3. If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns.
1. TRUE
2. TRUE
3. TRUE
You might also like to view...
Which of the following is likely to shift the labor supply curve to the right, assuming all else equal?
A) A rise in the wage rate B) A fall in the wage rate C) A fall in the population of the country due to a natural disaster D) A rise in the immigration of workers in search of better work opportunities
Foreign factories produce ________ of the shoes New Balance sells in the United States
A) none B) less than 15 percent C) roughly half D) about 75 percent