If a country has an absolute advantage at producing one good, which of the following is true?
A) It cannot have an absolute advantage at producing the other good.
B) It must also have a comparative advantage at producing both goods.
C) It can produce more of that good than the other good.
D) It can produce more of that good given the same resources.

Question

Quizplus · Accepted Answer

Absolute advantage means the country can produce the good using fewer resources than another country. Therefore, with the same resources, the country with an absolute advantage can produce more of that good than the other good.

If a Country Has an Absolute Advantage at Producing One