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When Does a Country Have an Absolute Advantage in the Production

Question 34

Multiple Choice

When does a country have an absolute advantage in the production of a good?  


A)  when that country can produce the good using fewer resources than another country would require 
B)  when that country has the lowest opportunity cost of producing the good and can produce it with the fewest resources 
C)  when that country has the lowest opportunity cost of producing the good regardless of whether it is produced with the fewest resources 
D)  when that country has the greatest opportunity cost of producing the good regardless of whether it is produced with the fewest resources

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