5
QuizMultiple Choice

Comparative and Absolute Advantage

Question 5 • 2102320-Economics HONORS - Edgenuity Teacher

Which calculation helps determine which producer has the absolute advantage?

Answer
A
Resources used multiplied by amount produced
B
Amount produced divided by resources used
C
Amount produced minus resources used
D
Resources used divided by amount produced

Explanation

Absolute advantage compares how much a producer can make using the same amount of resources, or how few resources are needed to make the same amount. Dividing the amount produced by resources used measures output per resource, so the producer with the higher result has the absolute advantage. The correct choice is “Amount produced divided by resources used.”

AI-written and checked against the verified answer.

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