Asked by Freddy Orellana on May 28, 2024
Verified
The United States would have an absolute advantage compared to Canada in the production of wheat if
A) wheat sells for a higher price in the United States than in Canada.
B) the demand for wheat is higher in the United States than in Canada.the United States.
C) the United States uses fewer resources to produce wheat than Canada does.
D) wheat can be produced at lower cost in terms of other goods than it could be in Canada.
Absolute Advantage
a condition in which a country, individual, or firm can produce more of a good or service with the same amount of resources than others can.
Resources
Inputs used in the production of goods and services, including labor, capital, and natural resources.
- Comprehend the concepts of absolute and comparative advantage in international trade.
Verified Answer
PL
Pamela LewisJun 02, 2024
Final Answer :
C
Explanation :
Absolute advantage refers to the ability of a country to produce a good using fewer resources than another country. Choice C directly addresses this by stating that the United States uses fewer resources to produce wheat than Canada does.
Learning Objectives
- Comprehend the concepts of absolute and comparative advantage in international trade.
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