Question 7(Multiple Choice Worth 4 points) (03.07 MC) A country can produce beach balls at a lower opportunity cost than any other country. It has __ in producing beach balls. an absolute advantage a comparative advantage both absolute and comparative advantage neither absolute nor comparative advantage

## Step 1<br />The problem is about understanding the concepts of absolute and comparative advantage in economics. <br /><br />## Step 2<br />Absolute advantage refers to the ability of a country to produce a good more efficiently than any other country. This means that the country can produce the good using fewer resources than any other country.<br /><br />## Step 3<br />On the other hand, comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost than any other country. This means that the country can produce the good at a lower cost than any other country, even if it is not the most efficient producer.<br /><br />## Step 4<br />In this problem, the country can produce beach balls at a lower opportunity cost than any other country. This indicates that the country has a comparative advantage in producing beach balls.