A country has an absolute advantage in the production of a good if that country
A)can produce the good using fewer resources than another country would require
B)has the lowest opportunity cost of producing the good and can produce it with the fewest resources
C)has the lowest opportunity cost of producing the good regardless of whether it is produced with the fewest resources
D)has the greatest opportunity cost of producing the good regardless of whether it is produced with the fewest resources
E)has the greatest opportunity cost of producing the good and produces it with the fewest resources

Question

Quizplus · Accepted Answer

A country has an absolute advantage in the production of a good if it can produce the good using fewer resources than another country would require. This means that the country is able to produce more of the good with the same amount of resources or produce the same amount of the good with fewer resources compared to another country.

A Country Has an Absolute Advantage in the Production of a Good