If a country has a comparative advantage in producing a product,it must also have an absolute advantage in producing that product.

Question

Quizplus · Accepted Answer

This statement is false. Comparative advantage means that a country can produce a product at a lower opportunity cost than another country. This does not necessarily mean that the country has an absolute advantage (i.e. can produce the product with fewer resources). It simply means that the country can produce the product relatively more efficiently compared to other goods they could produce, which may still be less efficient than another country's production of the same product.

If a Country Has a Comparative Advantage in Producing a Product,it