Which of the Following Is Not Correct

question 131

Multiple Choice

Which of the following is not correct?

• A)The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.
• B)The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X.
• C)The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing that good.
• D)The gains from specialization and trade are based not on comparative advantage but on absolute advantage.