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By definition, someone who has an absolute advantage must also have a comparative advantage. True or False

User Huygn
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Final answer:

False. Having an absolute advantage does not guarantee having a comparative advantage.

Step-by-step explanation:

False. By definition, having an absolute advantage in the production of a good or service means that a country can produce more of that good or service with the same amount of resources compared to another country. On the other hand, comparative advantage is the ability to produce a good or service at a lower opportunity cost compared to another country.

Having an absolute advantage does not guarantee that a country will also have a comparative advantage. For example, a country may have a higher level of productivity in producing both goods, but it may still have a comparative advantage in only one of the goods due to a lower opportunity cost.

Therefore, it is false that someone who has an absolute advantage must also have a comparative advantage.

User Mihai Dinculescu
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