Using graphs to illustrate the concepts, absolute advantage
A)is shown with differences in slope of a production possibilities curve; comparative advantage is shown with a lower curve.
B)requires a very steep curve; comparative advantage requires a curve with a shallow slope.
C)on one good requires that the slope of the production possibilities curve be steeper for that good.
D)is shown with a higher production possibilities curve; comparative advantage is shown with differences in slope of the curves.

Question

Quizplus · Accepted Answer

Absolute advantage is depicted by one country's production possibilities curve being positioned higher than another's, indicating it can produce more of a good with the same resources. Comparative advantage is illustrated through differences in the slopes of the production possibilities curves, showing how the opportunity cost of producing goods varies between countries.

Using Graphs to Illustrate the Concepts, Absolute Advantage