5
QuizMultiple Choice

Microeconomics — Test

Question 5 • Economics

Which is the best measurement to use to determine who might have the absolute advantage?

Answer
A
low opportunity cost
B
high opportunity cost
C
low efficiency
D
high efficiency

Explanation

Absolute advantage means producing more of a good with the same resources, or producing it using fewer resources. Efficiency measures how much output is produced from the resources used, so comparing efficiency is the best way to identify absolute advantage. Opportunity cost is used to determine comparative advantage, not absolute advantage.

AI-written and checked against the verified answer.

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