Which of the following statements about absolute advantage is true?

a. Korea has an absolute advantage in the production of both food and electronics.
b. Australia has an absolute advantage in the production of both food and electronics.
c. Korea has an absolute advantage in the production of food while Australia has an absolute advantage in the production of electronics.
d. Australia has an absolute advantage in the production of food while Korea has an absolute advantage in the production of electronics.

1 answer

To determine which statement about absolute advantage is true, we need to understand the concept of absolute advantage. A country has an absolute advantage in the production of a good if it can produce more of that good using the same amount of resources compared to another country.

Since I do not have specific information or data about the production capabilities of Korea and Australia for food and electronics, I cannot definitively identify which statement is true. Absolute advantage typically relies on comparative data regarding productivity, resource utilization, or output levels.

You may need to look at the specific production data or empirical information for Korea and Australia regarding food and electronics to ascertain which statement is correct. Without that, it’s impossible to determine which statement about absolute advantage is valid.