7
QuizMultiple Choice

Unit 2 Test

Question 7 • (OC27) Economics-2102310-Sem-Meadows

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.

AI-written and checked against the verified answer.

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