When each individual concentrates on performing the tasks and producing the goods for which she or he has the lowest opportunity cost,they are producing in accordance with the Principle of
A) Increasing Opportunity Cost.
B) Decreasing Opportunity Cost.
C) Comparative Advantage.
D) Scarcity.
E) Low-Hanging Fruit.

Question

Quizplus · Accepted Answer

The principle described in the question is referring to comparative advantage. This principle asserts that individuals or countries should specialize in producing the goods or services that they can produce at a lower opportunity cost than others, and therefore trade with others to obtain other goods or services they need but cannot produce as efficiently. By doing so, the overall production and welfare of all parties involved is maximized.

When Each Individual Concentrates on Performing the Tasks and Producing