Question

If a nation can produce a good or service at a lower cost than any other nation, what can you say about this nation?

It has sanctions on that particular good or service.

It has an absolute advantage with regard to that good or service.

It has a favorable import-to-export ratio.

It has a higher GDP than that of the countries it trades with.

Answer 1

It has an absolute advantage with regard to that good or service.

Step-by-step explanation:

did the test

Answer 2

B. It has an absolute advantage with regard to that good or service.

Step-by-step explanation:

If a nation can produce a good or service at a lower cost than any other nation, it means the nation has an absolute advantage with regard to that good or service.

For instance, if the cost of producing millet in China is lower than the cost of producing millet in Mali, then It is said that China has an absolute advantage in the production of millet.

Therefore, the answer is

B. It has an absolute advantage with regard to that good or service.