When Brazil can generate a product using fewer labor hours and resources than the United States,an economist would say that Brazil had
A)a comparative advantage in production of the product.
B)an absolute advantage in production of the product.
C)a higher opportunity cost of producing the product.
D)no incentive to import the product,regardless of the cost-price conditions for other products.

Question

Quizplus · Accepted Answer

An absolute advantage occurs when a country can produce a good using fewer resources than another country.

When Brazil Can Generate a Product Using Fewer Labor Hours