What distinguishes comparative advantage from absolute advantage in production?(1 point)

Question

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 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.

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.

Answer 1

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 is about the relative opportunity costs of producing goods, while absolute advantage refers to the ability of a country to produce more of a good with the same amount of resources compared to another country.