Even if one person has an absolute advantage in both activities, they will do better if each specializes in the activity for she has a comparative advantage. Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Explain and apply the Principle of Comparative Advantage. Topic: Exchange and Opportunity Cost 30. In general, individuals and nations should specialize in producing those goods for which they have a(n): The Principle of Comparative Advantage states that people should specialize in those activities for which their opportunity cost is lower, which is the same as saying the activity for which they have a comparative advantage.
Even if one person has an absolute advantage in both activities, they will do better if each specializes in the activity for she has a comparative advantage. Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Explain and apply the Principle of Comparative Advantage. Topic: Exchange and Opportunity Cost 30. In general, individuals and nations should specialize in producing those goods for which they have a(n): The Principle of Comparative Advantage states that people should specialize in those activities for which their opportunity cost is lower, which is the same as saying the activity for which they have a comparative advantage.
Test-Bank-for-Principles-of-Microeconomics-5th-Edition-by-Frank.docx