A country has an absolute advantage if it can produce a good at a lower opportunity cost than its trading partner.

Question

Quizplus · Accepted Answer

A country has a comparative advantage, not an absolute advantage, if it can produce a good at a lower opportunity cost than its trading partner. Absolute advantage refers to the ability of a country to produce more of a good using the same amount of resources as another country.

A Country Has an Absolute Advantage If It Can Produce