The difference between absolute and comparative advantages is that absolute advantage is relative to ________, while comparative advantage is relative to ________.
A) other nations; activity inside the country
B) similar industries; dissimilar industries
C) similar products; dissimilar products
D) activity inside the country; other nations
E) dissimilar products; similar products

Question

Quizplus · Accepted Answer

Absolute advantage is about being more efficient than other nations in producing a specific good, while comparative advantage is about having a lower opportunity cost in producing a good relative to other activities within the country.

The Difference Between Absolute and Comparative Advantages Is That Absolute