Which situation best illustrates the concept of absolute advantage?A.A software company is forced to increase its prices to pay for rising labor costs.B.A restaurant buys its ingredients from nearby farms to help the local economy.C.A factory in Vietnam can produce more shoes than other countries.D.The total value of U.S. exports is lower than the value of the country's imports

Read the Case commencing on the next page and answer the questions below: A clear example of a nation with an absolute advantage is Saudi Arabia, a country with abundant oil supplies that provide it with an absolute advantage over other nations.Other examples include Colombia and its climate—ideally suited to growing coffee—and Zambia, possessing some of the world’s richest copper mines. For Saudi Arabia to try and grow coffee and Colombia to drill for oil would be an extremely costly and, likely, unproductive undertaking.Q1 Explain absolute advantage theory. How can absolute advantage benefit a nation?

The theory of comparative advantage demonstrates that even if a country is less efficient than another in producing all goods, it can still benefit from trade by specializing in the production of the good in which it has:  A. The highest absolute advantage  B. The lowest opportunity cost  C. The highest total production  D. The lowest absolute cost

Absolute advantage meant greater efficiency in …................., or the use of less labour factor in productiona.processb.productionc.post-productiond.politics

Absolute advantage is:Question 14Select one:a.A tax on imported goods.b.The value of merchandise exports minus the value of merchandise imports.c.When an individual, region, or nation is relatively superior in producing certain goods because of lower opportunity costs, and gains by trading for goods that another is relatively more proficient at producing.d.The ability to produce a greater physical output with a given set of resources than a similar set of resources can produce somewhere else.e.when a country places a limit on the amount of a commodity that can be imported.

Economic theory suggest which of the following is true regarding comparative advantage and absolute advantage?Question 9Select one:a.when a country has an absolute advantage in producing two goods, it will also have a comparative advantage in producing those goods.b.a country gains economically if it concentrates its efforts in those economic activities where it has the greatest advantage or the least disadvantage, and then trades with other countries for those goods it doesn’t.c.a country with an absolute advantage in producing all goods will be better off by producing all goods in equal quantity.d.comparative advantage has nothing to do with determining what a country should produce.e.comparative and absolute advantage mean the same thing in international trade.