Suppose the country of Alphaland can produce more cars than Omegaland can produce.An economist would conclude that Alphaland has a(n)___________ in producing cars.

Question

Quizplus · Accepted Answer

An absolute advantage exists when one country can produce a good using fewer resources than another country. In this case, Alphaland can produce more cars than Omegaland, indicating that Alphaland has an absolute advantage in producing cars. Option B is incorrect because comparative advantage is determined by comparing the opportunity costs of producing goods between two countries. Option C and D are also incorrect because the information provided in the question does not suggest anything about the opportunity cost or resource cost of producing cars in either country.

Suppose the Country of Alphaland Can Produce More Cars Than