Acountry with an absolute advantage can produce a good or service
a. more slowly than another country
b. more efficiently than another country
c. less efficiently than another country
d. in twice the time as another country

B. More efficiently than another country.

Explanation:

Absolute advantage is one of the most important terms used in international trade. International trade refers to the exchange of goods and services across country lines. Absolute advantage refers to the ability of a country or region to produce a good or service more efficiently than another country or region. Absolute advantage is a consequence of low-cost production due to a country's particular conditions.

A country with an absolute advantage can produce a good or service more efficiently than another country.

Further Explanation:-

The term Absolute Advantage refers to the ability of a Firm or an Industry to produce or Manufacture a greater quantity of goods as compared to their rivals or competitors with the usage of the same amount of resources. Adam Smith, who was the one to bring the theory of Absolute Advantage said that it is almost impossible for every country to keep the same growth rate at the same pace because he said that the export of one country can be the import of another country. Adams Smith further added in his theory that all the countries will simultaneously grow if they practice free trade and if a country is specialized in any technology or business then that can become an added advantage of that country. He also stated that the wealth of the country depends on how much facilities the common citizen of that country have access to and the wealth of the country cannot be determined from their gold reserves. He used to compare the labor productivity of a country in order to determine the absolute advantage of that country and never developed the concept of competitive advantage.    

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Answer details:

Grade – High School

Subject – Economy

Chapter – Absolute Advantage

Keywords –Absolute Advantage, Competitive Advantage, Gold Reserves, Economy, Competition, Rivals, Adams Smith, Theory, Free Trade, Export, Import.  

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