Assume the United States and Australia have the same amount of resources.In a given time period,the United States can produce 2 tons of beef or 200,000 cars.Australia can produce 1 ton of beef or 100,000 cars.This means that
A)The United States has a comparative advantage in beef.
B)Australia has a comparative advantage in cars.
C)The United States has an absolute advantage in both beef and cars.
D)Australia has an absolute advantage in both beef and cars.

Question

Quizplus · Accepted Answer

The United States can produce more of both beef and cars than Australia with the same amount of resources, indicating an absolute advantage in both goods.

Assume the United States and Australia Have the Same Amount