If the U.S. has the ability to produce more steel than any other country in the world, the U.S. has a(n)________ advantage in steel production.

Question

Quizplus · Accepted Answer

The ability to produce more steel than any other country in the world indicates an absolute advantage in steel production, as the U.S. has a higher level of productivity than any other country. Relative advantage measures the opportunity cost of producing goods compared to the opportunity cost of producing another good within a country, comparative advantage measures the opportunity cost of producing goods compared to other countries, and globalized advantage is not a commonly used term in economics.

If the US Has the Ability to Produce More Steel Than Any