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The law of comparative advantage says that a person should produce a good if she

The law of comparative advantage says that a person should produce a good if she
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Solution Guide / Answer Key:

ECONOMICS

Multiple Choice

           The law of comparative advantage says that a person should produce a good if she

a.

has the greatest desire to consume that good

b.

has the lowest opportunity cost of producing that good

c.

has an absolute advantage in a related activity

d.

has a comparative advantage in a related activity

e.

is equally good at producing this good as someone else is

 

           FILE: MS WORD

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