Asked by
vidhya swami
on Nov 17, 2024
Verified
If a country has the comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product.
Comparative Advantage
The capability of a person, business, or nation to manufacture a product or provide a service with a smaller opportunity cost compared to rivals.
Absolute Advantage
The capability of a country, entity, or individual to produce a particular good or service more efficiently than others, using the same amount of resources.
Producing
The act of creating goods or services through the combination of labor, capital, and resources, intended for exchange or personal use.
- Exhibit understanding of absolute and comparative advantage within the framework of domestic and international trade.
Verified Answer
TL
Learning Objectives
- Exhibit understanding of absolute and comparative advantage within the framework of domestic and international trade.