Which of the following statements about absolute and comparative advantage is not true? A country may have:
A) a comparative advantage but not an absolute advantage in the production of a good.
B) an absolute advantage but not a comparative advantage in the production of a good
C) the absolute advantage in the production of all goods.
D) neither absolute nor comparative advantage in the production of any goods.

Question

Quizplus · Accepted Answer

A country will always have a comparative advantage in some goods due to differences in opportunity costs, even if it does not have an absolute advantage in any goods.

Which of the Following Statements About Absolute and Comparative Advantage