When one country can produce a product at a lower cost in terms of other goods, that country is said to have

A) an absolute advantage.
B) a comparative advantage.
C) a productive advantage.
D) an unfair advantage.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost compared to others.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Productive Advantage

Occurs when a country, business, or individual produces a good or service at a lower opportunity cost than competitors, leading to more efficient production.