A country can have an absolute advantage in producing all goods compared to another country, yet still benefit from trade due to comparative advantage. True or False?

True. A country can be better at producing all goods, meaning it has an absolute advantage, but it can still gain from trade by focusing on what it does best relative to other goods. This is where comparative advantage comes in, which is about producing goods at a lower opportunity cost. For example, if Country A is excellent at making both cars and computers but is much better at making cars, it should focus on cars. Meanwhile, if Country B is less efficient overall but relatively better at making computers, both countries can benefit by trading cars for computers, allowing each to specialize and increase overall production.