Question

Which of the following is true? A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. A nation cannot have an absolute advantage in the production of every good. A nation cannot have a comparative advantage in the production of every good.

Answer 1

Answer: A nation cannot have a comparative advantage in the production of every good.

The principle of comparative advantage states that under free commerce, an representative will produce more of and consume less of a commodity for which they have a comparative advantage. Comparative advantage is the economic experience depicting the work increase from trade for individuals or nations, which originate from differences in their factor endowments or technological progress.