If country X has higher labor productivity in the production of umbrellas than the rest of the world, we would say that country X has a(n) _____ in the production of umbrellas.
A)comparative advantage
B)absolute advantage
C)absolute disadvantage
D)comparative disadvantage

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service. Since country X has higher labor productivity in the production of umbrellas than the rest of the world, it means it can produce umbrellas more efficiently, indicating an absolute advantage.

If Country X Has Higher Labor Productivity in the Production