A person has a comparative advantage in an activity whenever he or she
A) has an absolute advantage in the activity.
B) can perform the activity at a lower opportunity cost than can anyone else.
C) can do the activity in less time than anyone else.
D) can do everything better than anyone else.

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a person can perform an activity at a lower opportunity cost than anyone else, not necessarily because they can do it faster or better in absolute terms. This concept is fundamental in economics, especially in the theory of international trade, where it explains how and why countries engage in the exchange of goods and services.

A Person Has a Comparative Advantage in an Activity Whenever