Country a Produces a Ton of Coffee Using One Unit

question 43

Multiple Choice

Country A produces a ton of coffee using one unit of resources.Country B produces two tons of coffee using one unit of resources.Which of the following is true regarding Country A and Country B?

• A) Country A has an absolute advantage in producing coffee.
• B) Country B has an absolute advantage in producing coffee.
• C) Neither Country A nor Country B has an absolute advantage in producing coffee.
• D) Both Country A and Country B have an absolute advantage in producing coffee.

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Definitions:

Slope

A measure of how steep a line or curve is. The slope of a line is measured by “rise over run”—the change in the y-variable between two points on the line divided by the change in the x-variable between those same two points.

Absolute Value

The value of a number without regard to a plus or minus sign.

Horizontal Change

Alterations or movements that occur parallel to the x-axis in a coordinate system, often reflecting changes over time.

Opportunity Cost

The cost of the next best alternative foregone when a decision is made.