If a nation has the lowest opportunity cost of producing a good, that nation has a(n):
A) comparative advantage.
B) absolute advantage.
C) comparative advantage and an absolute advantage.
D) absolute advantage and possibly a comparative advantage.

Question

Quizplus · Accepted Answer

The lowest opportunity cost means that the nation can produce the good at a relatively lower cost compared to other goods it produces. This gives it a comparative advantage in producing the good. However, it does not necessarily mean that the nation has an absolute advantage, as it may still be outperformed by other nations in terms of the absolute quantity of output it can produce.

If a Nation Has the Lowest Opportunity Cost of Producing