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Using the chart, identify an example of absolute advantage for the United States over either Country A or Country B. Be sure to identify the product and the country. Explain how the availability and use of a natural resource may impact advantage.

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Answer:

Absolute advantage is the advantage that a country has when it can produce a particular good or service at a lower cost than other countries.

Step-by-step explanation:

The United States, in particular, has absolute advantage in the production of oil. Currently, the U.S. is the largest oil producer in the world, with around 15 million barrels a day.

This advantage occurs because the United States has ample oil deposits, both conventional and non-conventional (non-conventional deposits are those that can only be exploited through fracking), and also because the U.S. has the technical capacity, both in terms of infrastructure and human capital, to exploit those oil deposits in a satisfactory manner, and more importantly, in a more efficient and cheaper way than most other countries in the world.

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