If one country is twice the size of another country and is better at making almost everything than the benighted citizens of the smaller county,
A)the bigger county enjoys an absolute advantage.
B)the bigger county enjoys an relative advantage.
C)the bigger county enjoys an comparative advantage.
D)there is not enough information to make a determination.

Question

Quizplus · Accepted Answer

The bigger country enjoys an absolute advantage because it is better at making almost everything and is twice the size of the smaller country. This means that it can produce more goods and services in absolute terms, without necessarily being more efficient than the smaller country.

If One Country Is Twice the Size of Another Country