If you can make $25,000 a year teaching, $20,000 a year writing computer programs, $30,000 a year driving a cab, and $40,000 a year as an actor or actress. You have a comparative advantage in
A) teaching.
B) writing computer programs
C) being an actor or actress.
D) one of them but we need more information to know which.

Question

Quizplus · Accepted Answer

Comparative advantage means being able to produce a good or service at a lower opportunity cost than someone else. In this case, if the individual has a comparative advantage in being an actor or actress, it means they can earn $40,000 in that job while having a lower opportunity cost compared to their other options. Therefore, they should choose to pursue acting.

If You Can Make $25,000 a Year Teaching, $20,000 a Year