Given two economic systems, A and B, if economy A has an absolute advantage in the production of widgets, then
A) fewer inputs are necessary to produce widgets in economy A than in economy B.
B) economy A must give up less of all other goods to produce widgets than economy B.
C) economy A is less efficient in the production of widgets than economy B.
D) economy A would not benefit from the specialization of production.

Question

Quizplus · Accepted Answer

An absolute advantage in the production of widgets means that economy A can produce more widgets than economy B using the same amount of inputs or produce the same amount of widgets using fewer inputs. Therefore, option A is the correct choice.

Given Two Economic Systems, a and B, If Economy a Has