Ithilium, a European country, is able to produce more electronics than Kilim, a North American country, even though both countries use the same amount of resources. Given this information, it can be deduced that Ithilium has a(n):
A) comparative advantage over Kilim.
B) higher trade surplus than Kilim.
C) absolute advantage over Kilim.
D) higher balance of payments surplus than Kilim.

Question

Quizplus · Accepted Answer

Ithilium can produce more electronics with the same resources, indicating it has an absolute advantage over Kilim.

Ithilium, a European Country, Is Able to Produce More Electronics