If country A has an absolute advantage over country B in the production of good X, then:
A)the opportunity cost of producing X in country A is lower than in country B.
B)the opportunity cost of producing X in country A is higher than in country B.
C)good X can be produced in country A using fewer inputs than in country B.
D)good X can be produced in country B using fewer inputs than in country B.

Question

Quizplus · Accepted Answer

Absolute advantage means that a country can produce a good using fewer resources or inputs than another country. Therefore, if country A has an absolute advantage over country B in the production of good X, it means that country A can produce more units of good X with the same amount of resources or produce the same amount of good X with fewer resources. This is why option C is correct.

If Country a Has an Absolute Advantage Over Country B