What kind of advantage does a country have if it can make a product more efficiently?
A. an import advantage
B. an export advantage
C. a comparative advantage
D. an absolute advantage
Answer (2)
A country that produces a product more efficiently holds an absolute advantage , allowing it to create more goods with the same resources. This increased efficiency leads to better competitiveness in international markets and greater export potential. Therefore, the correct answer is D. an absolute advantage .
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A country that produces a product more efficiently has an absolute advantage, meaning it can create more output than others with the same resources. This can lead to increased competitiveness and the ability to export more goods. It's important to differentiate this from comparative advantage, which focuses on opportunity costs. ;
