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One Region Is Said to Have an Absolute Advantage Over

Question 43

Multiple Choice

One region is said to have an absolute advantage over another region in the production of good X when


A) there is no demand for good X in the second region.
B) the opportunity cost of one unit of X is lower in the first region than in the second region.
C) an equal quantity of resources can produce more of good X in the first region than in the second region.
D) the first region has a larger supply of the raw materials required to produce good X.
E) the first region has a more productive labour force than the second.

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