-Refer to Table 3-5. Which country has an absolute advantage in each product?
A) Canada has an absolute advantage in airplanes, and Japan has an absolute advantage in cars.
B) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in both goods.
C) Canada has an absolute advantage in cars, and Japan has an absolute advantage in airplanes.
D) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in cars.

Question

-Refer to Table 3-5. Which country has an absolute advantage in each product?
A) Canada has an absolute advantage in airplanes, and Japan has an absolute advantage in cars. 
B) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in both goods. 
C) Canada has an absolute advantage in cars, and Japan has an absolute advantage in airplanes. 
D) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in cars.

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a country to produce a good more efficiently than another country. Without seeing Table 3-5, the correct answer cannot be determined from the information provided. However, based on the structure of the question, if we assume that the choices are based on hypothetical data where Canada produces more airplanes and Japan produces more cars efficiently, then choice A would be correct. This is a general explanation based on the concept of absolute advantage in economics.