Table 3-6

-Refer to Table 3-6.Which country has an absolute advantage in each product
A)Denmark has an absolute advantage in bread, and Italy has an absolute advantage in cheese.
B)Denmark has an absolute advantage in cheese, and Italy has an absolute advantage in bread.
C)Denmark has an absolute advantage in neither good, and Italy has an absolute advantage in both goods.
D)Denmark has an absolute advantage in both goods, and Italy has an absolute advantage in neither good.

Question

Table 3-6
 
-Refer to Table 3-6.Which country has an absolute advantage in each product
A)Denmark has an absolute advantage in bread, and Italy has an absolute advantage in cheese. 
B)Denmark has an absolute advantage in cheese, and Italy has an absolute advantage in bread. 
C)Denmark has an absolute advantage in neither good, and Italy has an absolute advantage in both goods. 
D)Denmark has an absolute advantage in both goods, and Italy has an absolute advantage in neither good.

Quizplus · Accepted Answer

An absolute advantage occurs when a country can produce more of a good with the same resources compared to another country. Without the specific data from Table 3-6, the choice D suggests that Denmark can produce more of both goods than Italy.

Table 3-6 -Refer to Table 3-6.Which Country Has an Absolute Advantage in an Absolute