A country that has an absolute advantage in producing all goods will .
A) produce all goods at lowest opportunity cost
B) have a comparative advantage in all goods
C) have a comparative advantage in some goods but not all
D) not gain from specialization and trade

Question

Quizplus · Accepted Answer

A country with an absolute advantage in all goods will still have a comparative advantage in some goods, as comparative advantage depends on opportunity costs, not absolute production capabilities.

A Country That Has an Absolute Advantage in Producing All