If a Country Has the Comparative Advantage in Producing a Product

question 38

True/False

If a country has the comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product.

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Definitions:

Percent

A measure or ratio expressed as a fraction of 100.

Patent

A legal right granted by the government to an inventor, granting exclusive use of an invention for a certain period of time, preventing others from making, using, or selling the invention without permission.

Transfer Price

The price at which goods and services are transferred between departments or divisions within the same company or between related entities.

Unused Capacity

The resources and capabilities that a company has available but is not currently utilizing to their full extent, often an opportunity for increased production.