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ECON for Macroeconomics
Quiz 2: Economic Tools and Economics Systems
It Is Possible for One Person to Have a Comparative
Question 23
True False
It is possible for one person to have a comparative advantage in the production of all products?
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Q 24
Comparative advantage is based on opportunity costs.
Q 25
The law of comparative advantage says that a person should produce a good if she A) has the greatest desire to consume that good B) has the lowest opportunity cost of producing that good C) has an absolute advantage in a related activity D) has a comparative advantage in a related activity E) is equally good at producing this good as someone else is
Q 26
The law of comparative advantage says that A) the individual with the lowest opportunity cost of producing a particular good should produce it B) comparative advantage exists only when one person has an absolute advantage in the production of two goods C) whoever has a comparative advantage in producing a good also has an absolute advantage in producing that good D) whoever has an absolute advantage in producing a good also has a comparative advantage in producing that good E) gains from trade are possible only when one person has the comparative advantage in producing both goods
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