Whenever a country has an absolute advantage in the production of a good, that implies that the country should specialize in the production of that good.

Question

​Whenever a country has an absolute advantage in the production of a good, that implies that the country should specialize in the production of that good.

Quizplus · Accepted Answer

Having an absolute advantage in producing a good does not necessarily mean a country should specialize in that good. The decision to specialize is better guided by comparative advantage, which considers the opportunity cost of producing goods relative to other goods.

​Whenever a Country Has an Absolute Advantage in the Production

Whenever a Country Has an Absolute Advantage in the Production