Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The country that uses fewer resources
B
The country that produces more of the good
C
The country that has higher opportunity costs
D
The country that can trade the good
Understanding the Answer
Let's break down why this is correct
Answer
A country has an absolute advantage in producing a good if it can make more of that good than another country using the same resources. This means that the country is more efficient at producing that item. For example, if Country A can produce 10 tons of rice using the same land and labor that Country B uses to produce only 5 tons, then Country A has an absolute advantage in rice production. This is important because it shows which country can produce certain goods more effectively, allowing them to potentially trade with others for better economic benefits. Understanding absolute advantage helps countries decide how to use their resources most wisely.
Detailed Explanation
A country has an absolute advantage if it can make more of something with the same resources. Other options are incorrect because Some might think using fewer resources means an advantage; Higher opportunity costs mean giving up more to make something.
Key Concepts
Absolute advantage
Topic
Absolute and Comparative Advantage
Difficulty
easy level question
Cognitive Level
understand
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