The relative price of two goods (units of A per unit of B) is the same as the opportunity cost of producing good B.
B.
True; Challenging

Question

Quizplus · Accepted Answer

This statement is true according to the law of comparative advantage, which states that countries or individuals should specialize in producing goods where they have a lower opportunity cost, meaning they give up fewer resources to produce that good compared to other goods. The relative price of two goods reflects this opportunity cost. Therefore, the statement is correct.

The Relative Price of Two Goods (Units of a Per