Question

Which of the following is an accurate definition of absolute advantage as it relates to international trade? A. Having absolute advantage means that one nation can produce a good or service more efficiently than anyone else. B. Absolute advantage in terms of international trade refers to the nation with the highest overall balance of payments statement. C. Absolute advantage is when a nation can produce a good or service at a lower opportunity cost than any other nation. D. Having absolute advantage means that one nation can finance all other nations' deficits without falling into debt.

Answer 1

Absolute advantage means that one nation can produce a good or service more efficiently than anyone else. 

Answer 2

The answer to your question is D)