Sloimekia is able to produce more of a particular variety of cloth than its neighboring countries. Sloimekia and its neighboring countries have the same amount of resources for producing this particular cloth. In this case, which of the following is definitely true of Sloimekia?
A)Sloimekia has a higher trade surplus than its neighboring countries.
B)Sloimekia enjoys an absolute advantage in producing this particular cloth.
C)Sloimekia enjoys the highest balance of trade among its neighboring countries.
D)Sloimekia has a lower balance of payments and a lower trade deficit.

Question

Quizplus · Accepted Answer

Sloimekia's ability to produce more cloth than its neighboring countries with the same resources means that it has an absolute advantage. This is the only option that is definitely true based on the given information. Options A, C, and D are not necessarily true or cannot be concluded based on the information provided.

Sloimekia Is Able to Produce More of a Particular Variety