Which statement is TRUE?
A) It is virtually impossible for a country to be the low-cost producer of all goods and services.
B) The benefits of trade depend on absolute advantage, not comparative advantage.
C) A country could have a comparative advantage in producing everything.
D) A country that has the absolute advantage in production will also have the comparative advantage.

Question

Quizplus · Accepted Answer

The concept of comparative advantage implies that different countries have different strengths and weaknesses in terms of their ability to produce goods efficiently. No country can be the low-cost producer of all goods and services, as each country has unique resources, skill sets, and levels of technology, which make certain products cheaper to produce than others.

Which Statement Is TRUE