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Question
What distinguishes comparative advantage from absolute advantage in production?(1 point)
Responses
A country has comparative advantage in production when its opportunity costs of producing a good are higher than another country's.
A country has comparative advantage in production when its opportunity costs of producing a good are higher than another country's.
A country has comparative advantage in production when its opportunity costs of producing a good are lower than another country's.
A country has comparative advantage in production when its opportunity costs of producing a good are lower than another country's.
A country has comparative advantage in production when it requires fewer total inputs than does another country to produce the same output.
A country has comparative advantage in production when it requires fewer total inputs than does another country to produce the same output.
A country has comparative advantage in production when it requires more total inputs than does another country to produce the same output.
A country has comparative advantage in production when it requires more total inputs than does another country to produce the same output.
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1 answer
The correct response is:
A country has comparative advantage in production when its opportunity costs of producing a good are lower than another country's.
Comparative advantage focuses on the relative opportunity costs of producing goods, while absolute advantage refers to the ability of a country to produce a good using fewer resources than another country.
