Table 3-3

-Refer to Table 3-3.Montana has an absolute advantage in
A)birdhouses and Missouri has an absolute advantage in baskets.
B)baskets and Missouri has an absolute advantage in birdhouses.
C)neither good and Missouri has an absolute advantage in both goods.
D)both goods and Missouri has an absolute advantage in neither good.

Question

Table 3-3
 
-Refer to Table 3-3.Montana has an absolute advantage in
A)birdhouses and Missouri has an absolute advantage in baskets. 
B)baskets and Missouri has an absolute advantage in birdhouses. 
C)neither good and Missouri has an absolute advantage in both goods. 
D)both goods and Missouri has an absolute advantage in neither good.

Quizplus · Accepted Answer

An absolute advantage occurs when a country or entity can produce more of a good with the same resources compared to another. Without the specific data from Table 3-3, the correct answer is based on the assumption that Missouri can produce more of both goods than Montana.

Table 3-3 -Refer to Table 3-3.Montana Has an Absolute Advantage in