Relative to Al,Joe has ________ if Joe can produce a good at a lower opportunity cost than Al.
A) a comparative advantage
B) more production efficiency
C) a comparative benefit
D) a marginal benefit
E) a free lunch

Question

Quizplus · Accepted Answer

Joe has a comparative advantage over Al in producing the good because he can produce it at a lower opportunity cost. This means Joe would have to give up less of another good to produce the same unit of the good in question. Therefore, Joe would be able to produce more of the good in question at a lower cost than Al, giving him a comparative advantage.

Relative to Al,Joe Has ________ If Joe Can Produce a Good