Question

Australia has an absolute advantage over South Africa in wool production if, during a year, Australia:


can produce more wool than South Africa.


specialises in wool production.


can produce less wool than South Africa


can produce more wool than South Africa with a given amount of resources

Answer 1

Australia has an absolute advantage over South Africa in wool production if, during a year, Australia:

**can produce more wool than South Africa with a given amount of resources.**

This means that Australia is more efficient in wool production compared to South Africa, leading to a higher output using the same quantity of resources.