The United States would have an absolute advantage compared to Canada in the production of wheat if
A) wheat sells for a higher price in the United States than in Canada.
B) the demand for wheat is higher in the United States than in Canada.the United States.
C) the United States uses fewer resources to produce wheat than Canada does.
D) wheat can be produced at lower cost in terms of other goods than it could be in Canada.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a country to produce a good using fewer resources than another country. Choice C directly addresses this by stating that the United States uses fewer resources to produce wheat than Canada does.

The United States Would Have an Absolute Advantage Compared to Canada