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The primary difference between absolute and comparative advantage is Group of answer choices a.Absolute advantage refers...

The primary difference between absolute and comparative advantage is

Group of answer choices

a.Absolute advantage refers to the ability to produce more of a good or service using the same amount of resources and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost

b.Absolute advantage doesn't change as time passes, while comparative advantage does

c.Absolute advantage is a concept that was utilized in communist countries and comparative advantage is a capitalist idea

d.Absolute advantage refers to the ability to produce a good or service at a lower opportunity cost and comparative advantage refers to the ability to produce more of a good or service using the same amount of resources

Solutions

Expert Solution

Option A.

  • Absolute advantage and comparative advantage are the two main concepts used during the discussion of international trade.
  • Absolute advantage refers to the benefit any country has when opposed to another country when it is able to produce more of a good in less time, with minimum or same amount of resources.
  • While comparative advantage refers to the benefit a country has when it is able to produce goods and services at lower opportunity costs when compared to other countries.

Rahul Sunny answered 2 years ago
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