-Refer to Table 3-1. What does each producer have an absolute advantage in?
A) The farmer has an absolute advantage in meat, and the rancher has an absolute advantage in potatoes.
B) The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in meat.
C) The rancher has an absolute advantage in neither good, and the farmer has an absolute advantage in both goods.
D) The farmer has an absolute advantage in neither good, and the rancher has an absolute advantage in both goods.

Question

-Refer to Table 3-1. What does each producer have an absolute advantage in?
A) The farmer has an absolute advantage in meat, and the rancher has an absolute advantage in potatoes. 
B) The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in meat. 
C) The rancher has an absolute advantage in neither good, and the farmer has an absolute advantage in both goods. 
D) The farmer has an absolute advantage in neither good, and the rancher has an absolute advantage in both goods.

Quizplus · Accepted Answer

Absolute advantage refers to the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group. Without seeing Table 3-1, the correct answer is determined by understanding that if the farmer has an absolute advantage in potatoes and the rancher in meat, it means each can produce their respective goods more efficiently (i.e., with less input) than the other.