If South Korea has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.

Question

Quizplus · Accepted Answer

Having an absolute advantage means a country can produce more of a good using the same amount of resources as another country. Comparative advantage, however, is about producing a good at a lower opportunity cost. It's possible for a country to have an absolute advantage in producing all goods but still have a comparative advantage in only some of them, depending on the opportunity costs involved.

If South Korea Has an Absolute Advantage in the Production