A nation with no absolute advantage:

Question

Quizplus · Accepted Answer

Despite lacking an absolute advantage, a nation can still have a comparative advantage in the production of certain goods. By specializing in these goods and trading with other nations, the nation can improve its overall standard of living. Therefore, the best choice is C. A is incorrect because finding an absolute advantage may not be possible for every nation. B is incorrect because a lack of absolute advantage does not necessarily lead to a decrease in the standard of living. D is incorrect because without trade, the nation would miss out on the benefits of comparative advantage.

A Nation with No Absolute Advantage