6
QuizMultiple Choice

The Global Economy — Test

Question 6 • Economics and Personal Finance

The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?

Answer
A
It produces food at a higher cost than Japan.
B
It must import most of its food from Japan.
C
It produces food more efficiently than Japan.
D
It must export most of its food to Japan.

Explanation

Absolute advantage means a country can produce more of a good using the same resources, or produce the same amount with fewer resources. So the United States produces food more efficiently than Japan. It does not, by itself, mean the United States must import or export most of its food.

AI-written and checked against the verified answer.

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