Which of the following statements shows how absolute advantage can be distinguished from comparative advantage?
A) Absolute advantage refers to the ability to produce a good using fewer inputs, while comparative advantage is based on the monthly amount.
B) Absolute advantage is based on the yearly production amount that a country can produce, while comparative advantage is based on the monthly production amount.
C) Absolute advantage refers to the ability to produce a larger amount of goods with the same number of inputs, whereas comparative advantage refers to the ability to have the lowest opportunity cost of production.
D) Absolute advantage is based on the amount of land a country has to use, while comparative advantage is based on the cost of the labor.
Correct Answer:
Verified
Q45: Suppose France can produce four phones or
Q46: The theory of comparative advantage is:
A) rarely
Q47: Use the following to answer questions:
Figure: PPF
Q48: Comparative advantage is determined by which of
Q49: Use the following to answer questions:
Figure: PPF
Q51: Anita is a wonderful baker and can
Q52: Use the following to answer questions:
Figure: PPF
Q53: The production possibilities frontier shows:
A) the combinations
Q54: Use the following to answer questions:
Figure: PPF
Q55: Use the following to answer questions:
Figure: PPF
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