5
QuizMultiple Choice

International Trade

Question 5 • IL-Economics

What kind of advantage does a country have if it can make a product more efficiently?

Answer
A
an import advantage.
B
an export advantage.
C
a comparative advantage.
D
an absolute advantage.

Explanation

A country has an absolute advantage when it can produce a product more efficiently than another country, such as by using fewer resources or less time. Comparative advantage instead means producing something at a lower opportunity cost. Therefore, the correct choice is absolute advantage.

AI-written and checked against the verified answer.

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