If a person has a comparative advantage in some activity,she must have an absolute advantage in that activity as well.

Question

Quizplus · Accepted Answer

This statement is false. A person can have a comparative advantage in an activity even if they do not have an absolute advantage in that activity. Comparative advantage refers to the ability to produce a good or service at a lower opportunity cost compared to other producers, while absolute advantage refers to the ability to produce more of a good or service compared to other producers using the same amount of resources. It is possible for someone to have a lower opportunity cost in producing a good, but not be able to produce the same amount as someone else due to limited resources or different production techniques.

If a Person Has a Comparative Advantage in Some Activity,she