If a country can, with a single unit of labor, produce more of both clothing and computers than another country, then the first country has

Question

Quizplus · Accepted Answer

An absolute advantage exists when a country can produce more of a good with the same amount of resources (in this case, labor) than another country. The question specifies that the first country can produce more of both goods with a single unit of labor, indicating an absolute advantage in both goods, not necessarily a comparative advantage. Comparative advantage involves producing a good at a lower opportunity cost, which isn't addressed in the scenario provided.

If a Country Can, with a Single Unit of Labor