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Which is the best measurement to use to determine who might have the absolute advantage? high opportunity cost low opportunity cost low efficiency high efficiency

2 Answers

3 votes

Answer: D

Explanation: High Efficiency

4 votes

Answer: High efficiency

Step-by-step explanation:

Absolute advantage is a term coined by the revered economist, Adam Smith. It is used to describe a situation where one country is capable of producing more of a good or service than another country even though inputs are the same.

It can be measured by which country has the higher efficiency in production because a country that is more efficient will produce more goods at a lower cost which is the premise of Absolute advantage because it means that at the same cost, the more efficient country will produce more goods.

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