14
QuizMultiple Choice

Microeconomics — Test

Question 14 • Economics

Which calculation helps determine which producer has the absolute advantage?

Answer
A
Amount produced minus resources used
B
Amount produced divided by resources used
C
Resources used divided by amount produced
D
Resources used multiplied by amount produced

Explanation

Absolute advantage compares how much a producer can make using the same amount of resources, or how few resources are needed to make the same amount. Dividing the amount produced by the resources used gives output per resource unit, so the higher result indicates greater productivity. The correct choice is “Amount produced divided by resources used.”

AI-written and checked against the verified answer.

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