If a country possesses the absolute advantage in the production of one good:
A) then it must also possess the absolute advantage in the production of the other good.
B) then it must also possess the comparative advantage in the production of both goods.
C) then it must also possess the comparative advantage in the production of the other good.
D) it can produce more of that good given the same resources.

Question

Quizplus · Accepted Answer

Possessing absolute advantage means that the country can produce more of a certain good given the same amount of resources compared to other countries. This does not necessarily mean that the country also has a comparative advantage in the production of that good or any other good. Therefore, choice D is the correct answer as it correctly identifies the benefit of possessing absolute advantage in the production of one good.

If a Country Possesses the Absolute Advantage in the Production