That each individual should engage in economic activities in which he or she is relatively more efficient is an application of the concept of
A) competition.
B) absolute advantage.
C) scarcity.
D) comparative advantage.

Question

Quizplus · Accepted Answer

The concept of engaging in economic activities in which one has a comparative advantage means that each individual should specialize in producing the goods or services in which they have a lower opportunity cost of production. This increases overall efficiency and productivity in the economy, as each person can trade with others who have different comparative advantages, resulting in gains from trade. This concept is known as comparative advantage.

That Each Individual Should Engage in Economic Activities in Which