If there are two goods and two countries, then one country can have a. an absolute advantage in both goods but a comparative advantage in only one good. b. an absolute advantage in both goods and a comparative advantage in both goods. c. an absolute advantage in neither good and a comparative advantage in both goods. d. an absolute advantage in one good, an absolute disadvantage in the other good, and a comparative advantage in neither.

If there are two goods and two countries, then one country can have

a. an absolute advantage in both goods but a comparative advantage in only one good.

b. an absolute advantage in both goods and a comparative advantage in both goods.

c. an absolute advantage in neither good and a comparative advantage in both goods.

d. an absolute advantage in one good, an absolute disadvantage in the other good, and a comparative advantage in neither.

 

answer:

Ans: an absolute advantage in both goods but a comparative advantage in only one good.

Explanation:

Absolute advantage refers to differences in productivity of countris, while comparative advantage refers to differences in opportunity costs. A country can have an absolute advantage in both goods, but not hava a comparative advantage in both goods. It can have comparative advantage in one good.

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