If there are two goods and two countries, then one country can have
A) an absolute advantage in only one good.
B) an absolute advantage in both goods.
C) a higher opportunity cost of producing both goods.
D) a lower opportunity cost of producing both goods.

Question

Quizplus · Accepted Answer

A country can have an absolute advantage in both goods if it can produce more of each good using the same amount of resources as the other country. Absolute advantage refers to the ability of a country to produce a good more efficiently than another country.

If There Are Two Goods and Two Countries, Then One