If a country is better at producing all goods, it has a(n):

Question

Quizplus · Accepted Answer

If a country is better at producing all goods, it means that it has an absolute advantage in all goods. This is different from comparative advantage, which refers to the ability to produce a specific good at a lower opportunity cost than another country. A country with an absolute advantage in all goods would not need to trade with other countries as it can produce everything more efficiently on its own. Therefore, the answer is C) absolute advantage.

If a Country Is Better at Producing All Goods, It