It is possible for China to have an absolute advantage over Japan in the production of rice, but not a comparative advantage over Japan in its production.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a country to produce more of a good using the same amount of resources as another country. Comparative advantage, however, is about producing goods at a lower opportunity cost. Therefore, it's possible for China to produce more rice than Japan (absolute advantage) but still have a higher opportunity cost in rice production, giving Japan the comparative advantage.

It Is Possible for China to Have an Absolute Advantage