Which of the Following Statements Shows How Absolute Advantage Can

question 101

Multiple Choice

Which of the following statements shows how absolute advantage can be distinguished from comparative advantage?

• A) Absolute advantage refers to the ability to produce a good using fewer inputs, while comparative advantage is based on the monthly amount.
• B) Absolute advantage is based on the yearly production amount that a country can produce, while comparative advantage is based on the monthly production amount.
• C) Absolute advantage refers to the ability to produce a larger amount of goods with the same number of inputs, whereas comparative advantage refers to the ability to have the lowest opportunity cost of production.
• D) Absolute advantage is based on the amount of land a country has to use, while comparative advantage is based on the cost of the labor.

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Definitions:

Maximum Allowable Error

The largest error that is considered acceptable in the calculation or measurement process.

Test Statistic

A value calculated from sample data that is used to test a hypothesis in statistics.

Normal

A type of statistical distribution where data is symmetrically distributed around the mean, known as the Gaussian distribution.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter, with a specified level of confidence.