People have different abilities for performing the same two tasks, and you want to identify who has a comparative advantage in one of the tasks. Which of the following is NOT one of the three steps for identifying, who has a comparative advantage in performing the selected task?
A)Determine how many hours it takes to perform each task for each person.
B)For each person, calculate the time it takes to do one task in terms of the other.
C)Determine which person has the lowest opportunity cost in performing the selected task.
D)Identify which person can perform the selected task most quickly.

Question

Quizplus · Accepted Answer

Identifying who can perform a task most quickly does not necessarily indicate who has a comparative advantage. Comparative advantage is determined by opportunity cost, which takes into account the trade-off between the two tasks.

People Have Different Abilities for Performing the Same Two Tasks