10
QuizMultiple Choice

Comparative and Absolute Advantage

Question 10 • 2102320-Economics HONORS - Edgenuity Teacher

Which is the best measurement to use to determine who might have the absolute advantage?

Answer
A
high opportunity cost
B
low opportunity cost
C
low efficiency
D
high efficiency

Explanation

Absolute advantage means being able to produce more of a good with the same resources, or produce the same amount using fewer resources. Efficiency measures how effectively resources are used, so high efficiency is the best indicator of absolute advantage. Opportunity cost is used to determine comparative advantage.

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