Individuals who have never been the best at doing anything
A)cannot have a comparative advantage in producing any product.
B)can still have a comparative advantage in producing some product.
C)perform all tasks at a higher opportunity cost than others.
D)must have an absolute advantage in at least ones task.

Question

Quizplus · Accepted Answer

Comparative advantage is based on the opportunity cost of producing a good or service, which means that even individuals who are not the best at doing anything can still have a lower opportunity cost in producing one product compared to another individual or country. Therefore, they can still have a comparative advantage in producing a product. Option A is incorrect because it assumes that comparative advantage is based on being the best at something. Option C is incorrect because it generalizes that all tasks have a higher opportunity cost for these individuals, which may not be true. Option D is incorrect because having an absolute advantage means being the best at producing a good or service, which is not the same as having a comparative advantage.

Individuals Who Have Never Been the Best at Doing Anything