In the context of trade Absolute Advantage is
Group of answer choices
when one country is more politically powerful so can have all it wants
when one country has more factories than it's trading partners
when one country can produce everything it needs without help
when one country has the ability to produce more of a product using the same amount of resources.
when one country has the ability to produce more of a product using the same amount of resources.
In the context of trade, Absolute Advantage refers to when one country has the ability to produce more of a product using the same amount of resources compared to its trading partners.
In the context of trade, Absolute Advantage refers to when one country has the ability to produce more of a product using the same amount of resources compared to its trading partners. To determine the answer, we need to understand the concept of absolute advantage.
Absolute advantage is a theory in economics that states a country has an absolute advantage if it can produce a good or service more efficiently or with more productivity than another country. This means that the country can produce more output with the same amount of input, such as labor, capital, or resources.
In the given context, the correct answer is "when one country has the ability to produce more of a product using the same amount of resources." This choice aligns with the definition of absolute advantage, as it mentions producing more with the same resources, indicating higher efficiency or productivity compared to its trading partners.