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MMLU / If Nation A can produce a good at lower opportunity cost than Nation B can…

Problem

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question

If Nation A can produce a good at lower opportunity cost than Nation B can produce the same good it is said that

choices

  1. Nation A has comparative advantage in the production of that good.
  2. Nation B has comparative advantage in the production of that good.
  3. Nation A has absolute advantage in the production of that good.
  4. Nation B has absolute advantage in the production of that good.

subject

high_school_macroeconomics

Discussion

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Source and history

Official source

initial import