5
QuizMultiple Choice

The Global Economy — Test

Question 5 • Economics and Personal Finance

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

Answer
A
an import advantage.
B
a comparative advantage.
C
an export 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 using fewer resources or less time. Comparative advantage instead means producing something at a lower opportunity cost. So the correct choice is an absolute advantage.

AI-written and checked against the verified answer.

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