If South Africa 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

An absolute advantage means a country can produce more of a good with the same resources, while a comparative advantage means it can produce a good at a lower opportunity cost. A country can have an absolute advantage without having a comparative advantage.

If South Africa Has an Absolute Advantage in the Production