If a nation can produce greater quantities of a good than another nation, it has a(n)
A)comparative advantage.
B)absolute advantage.
C)declarative advantage.
D)entire advantage.

Question

Quizplus · Accepted Answer

A nation has an absolute advantage when it can produce a greater quantity of a good or service than another nation using the same amount of resources. A comparative advantage, on the other hand, is when a nation can produce a good at a lower opportunity cost than another nation. The other choices, such as declarative advantage and entire advantage, are not recognized economic terms.

If a Nation Can Produce Greater Quantities of a Good