The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?
A. It must import most of its food from Japan.
B. It produces food more efficiently than Japan.
C. It produces food at a higher cost than Japan.
D. It must export most of its food to Japan.
Answer (1)
An absolute advantage means that the United States can produce food more efficiently than Japan, using fewer resources to achieve higher output. It highlights the differences in production efficiency between the two countries. Thus, the U.S. is better positioned to produce food compared to Japan. ;
