The law of comparative advantage says that

The law of comparative advantage says that
 a. the individual with the lowest opportunity cost of producing a particular good should produce it
  b. comparative advantage exists only when one person has an absolute advantage in the production of two goods
  c. whoever has a comparative advantage in producing a good also has an absolute advantage in producing that good
  d. whoever has an absolute advantage in producing a good also has a comparative advantage in producing that good
  e. gains from trade are possible only when one person has the comparative advantage in producing both goods

QUESTION 2

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

QUESTION 3

Comparative advantage is based on opportunity costs.
 a. True
  b. False

QUESTION 4

It is possible for one person to have a comparative advantage in the production of all products?
 a. True
  b. False

QUESTION 5

If people specialize in producing those goods for which they possess a comparative advantage, then the economy as a whole can produce a greater quantity of goods.
 a. True
  b. False