Which of the following statements about absolute and comparative advantage is not true?
A) If a country has a comparative advantage at producing a good, it can have an absolute advantage at producing another good.
B) If a country has an absolute advantage at producing a good, it can also have a comparative advantage at producing that good.
C) A country may have an absolute advantage at producing all goods.
D) A country may have a comparative advantage at producing all goods.

Question

Quizplus · Accepted Answer

A country cannot have a comparative advantage in producing all goods because comparative advantage is based on the relative efficiency of producing one good over another. If a country has a comparative advantage in one good, it must have a relative disadvantage in another, as comparative advantage is about comparing the opportunity costs between goods.

Which of the Following Statements About Absolute and Comparative Advantage