A person has a comparative advantage in producing a particular good if that person
A) has less desire to consume that good than anyone else has.
B) can produce it at lower opportunity cost than anyone else can.
C) has more human capital related to that good than anyone else has.
D) has higher productivity in producing it than anyone else has.

Question

Quizplus · Accepted Answer

The principle of comparative advantage states that a person or a country should specialize in producing the good for which they have the lowest opportunity cost. Opportunity cost refers to the cost of forgoing the production of another good in order to produce the first one. Therefore, a person has a comparative advantage if they can produce a particular good at a lower opportunity cost than anyone else can, which means that they are giving up less of another good in order to produce it. None of the other options address the concept of comparative advantage.

A Person Has a Comparative Advantage in Producing a Particular