If country X can produce a unit of good 1 with fewer resources than can country Y,it is correct to state that country X
A)has a comparative advantage in producing good 1.
B)has an absolute advantage in producing good 1.
C)will export good 1 to country Y.
D)will not produce good 1.

Question

Quizplus · Accepted Answer

Country X having the ability to produce a unit of good 1 with fewer resources than country Y indicates that Country X has an absolute advantage in producing good 1, not necessarily a comparative advantage or implications about trade patterns without further information.

If Country X Can Produce a Unit of Good 1