Country A must have an absolute advantage over country B in the production of a good when it
A) is able to produce the good for itself.
B) imports the good from country B.
C) imports inputs to produce the good from country B.
D) decides to export the good to country B.
E) can produce a unit of the good with less resources than country B.

Question

Quizplus · Accepted Answer

Absolute advantage means being able to produce a good with fewer resources. Therefore, country A must be able to produce a unit of the good with less resources than country B. Choices A, B, C, and D do not necessarily relate to absolute advantage.

Country a Must Have an Absolute Advantage Over Country B