Definition of Absolute Advantage
Which of the following best describes a nation's absolute advantage in the production of a specific good?
A
The nation can produce the good more efficiently than another nation.
B
The nation cannot also hold a comparative advantage in the good.
C
The nation can produce the good at a lower opportunity cost than another nation.
D
The nation automatically holds a comparative advantage in the production of the good.
E
The nation requires more raw materials to produce the good than another nation.
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