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

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a person can produce a good at a lower opportunity cost than others, not necessarily because they are the most efficient or have the most skills (human capital) in producing it.

A Person Has a Comparative Advantage in Producing a Particular