Final answer:
Absolute advantage is when a country can produce a good using fewer resources than another, not necessarily at a lower price, which is a common misconception. Comparative advantage is based on the lower opportunity cost of producing a good. Correctly understanding these concepts is crucial for the study of international trade and economic efficiency.
Step-by-step explanation:
The statement that "A country enjoys an absolute advantage in the production of a particular good when it can produce it at a lower price than another country" is false. The correct definition is that a country has an absolute advantage over another in producing a good if it uses fewer resources to produce that good, which can be due to differences in technology or natural endowments. In contrast, a comparative advantage exists when a country can produce a good at a lower opportunity cost compared to others.
An example to illustrate absolute advantage could be the oil extraction capability of a country. If one country can extract oil using less labor and capital because it has oil-rich land, then it has an absolute advantage in oil production over a country that lacks these natural resources. Countries specializing in goods for which they have a comparative advantage results in gains from trade and increased global production and consumption.