6
QuizMultiple Choice

Comparative and Absolute Advantage

Question 6 • 2102320-Economics HONORS - Edgenuity Teacher

Which describes a way in which consumers most likely benefit from producers’ absolute advantage?

Answer
A
Consumers’ opportunity costs decrease.
B
Prices decrease as a result of increased production efficiencies.
C
Producers always use savings to improve products.
D
Consumers can find a given product in more places.

Explanation

Absolute advantage means a producer can make more of a good using the same resources, or make it with fewer resources. This efficiency can lower production costs and increase output, which can lead to lower prices for consumers. So the best answer is “Prices decrease as a result of increased production efficiencies.”

AI-written and checked against the verified answer.

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