The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Absolute advantage is determined by comparing the opportunity costs of producing each good in different countries.

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-Absolute advantage is determined by comparing the opportunity costs of producing each good in different countries.

Quizplus · Accepted Answer

Absolute advantage is determined by comparing the actual quantities of goods and services that countries can produce using the same amount of resources, not by comparing opportunity costs. Opportunity costs are used to determine comparative advantage.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity