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QuizMultiple Choice

Comparative and Absolute Advantage

Question 1 • 2102320-Economics HONORS - Edgenuity Teacher

True or False? Higher opportunity costs equal a greater comparative advantage.

Answer
A
True
B
False

Explanation

Comparative advantage belongs to the producer with the lower opportunity cost of making a good. A higher opportunity cost means giving up more of another good, so it indicates a comparative disadvantage, not a greater advantage. Therefore, the statement is false.

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