Which of the following is an example of absolute advantage?

Question

Quizplus · Accepted Answer

Absolute advantage refers to a country's ability to produce a certain good or service more efficiently than any other country. In this case, Japan has an absolute advantage in making cars as it is more efficient than any other country. Option A only mentions Japan and the United States, so we cannot determine if Japan has an absolute advantage. Option B mentions that each country has an advantage in a different area, so there is no clear absolute advantage. Option C does not relate to absolute advantage and is irrelevant to the question. Option E states that all countries are equally efficient at making software, which does not relate to absolute advantage in car production.

Which of the Following Is an Example of Absolute Advantage