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Which of the Following Is True About Absolute Advantage

Question 37

Multiple Choice

Which of the following is true about absolute advantage?


A) It is the ability to produce more of a good than another producer with the same quantity of inputs.
B) All countries will produce the same amount of goods with the same quantity of inputs.
C) Individuals, companies, and countries should specialize in what they do best.
D) A product that might be in the mature stage in one country might be in the introductory stage in another market.
E) A business can realize higher profits by setting up operations in countries where the costs of labor and resources are lower than the costs in the domestic market.

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