Question

The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?

It must import most of its food from Japan.
It produces food more efficiently than Japan.
It produces food at a higher cost than Japan.
It must export most of its food to Japan.

Answer 1

It produces food more efficiently than Japan.

(Absolute advantage means the U.S. can produce more food using the same resources—or the same amount using fewer resources—than Japan.)