The ability of one country that has an absolute advantage in the production of two or more goods (or services)to produce one of them relatively more efficiently than the other is called a(n)_____.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability of a country to produce a specific good or service at a lower opportunity cost than another country. It is based on relative efficiency in production rather than absolute efficiency. The other options do not fit the definition given in the question.

The Ability of One Country That Has an Absolute Advantage