Given two economic systems, A and B, if economy A has a absolute advantage in the production of widgets, then
A)fewer inputs are necessary to produce widgets in economy A than in economy B.
B)economy A must give up less of all other goods to produce widgets than economy B.
C)economy A is less efficient in the production of widgets than economy B.
D)economy A would not benefit from the specialization of production.

Question

Quizplus · Accepted Answer

Absolute advantage means that economy A can produce more widgets with the same amount of inputs than economy B. Therefore, fewer inputs are necessary to produce widgets in economy A than in economy B.

Given Two Economic Systems, a and B, If Economy a Has