If a country has
A)a comparative advantage in the production of a good,it must also have an absolute advantage in producing that good.
B)an absolute advantage in producing a good,it might or might not have a comparative advantage in producing that good.
C)an absolute advantage in producing a good,it definitely also has a comparative advantage in producing that good.
D)an absolute advantage in producing a good,it definitely will not have a comparative advantage in producing that good.
E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

Absolute advantage refers to a country's ability to produce a good using fewer resources than another country. Comparative advantage refers to a country's ability to produce a good at a lower opportunity cost than another country. It is possible for a country to have an absolute advantage in producing a good, but not have a comparative advantage if it has to give up producing other goods that it was producing more efficiently. Therefore, option B is the best choice.

If a Country Has