By definition, every country has a(n) ____ advantage in some product.
A) Relative
B) Absolute
C) comparative
D) Superior
E) Inferior

Question

Quizplus · Accepted Answer

Comparative advantage refers to a country's ability to produce a particular good or service at a lower opportunity cost than another country. It means that a country specializes in producing the goods or services in which it has a comparative advantage and trades with other countries for goods or services in which they have a comparative advantage, resulting in mutual benefits to both countries. Absolute advantage, on the other hand, refers to a country's ability to produce a particular good or service using fewer resources than another country. Relative advantage and superior/inferior advantage are not recognized economic terms.

By Definition, Every Country Has A(n) ____ Advantage in Some