Question

If The United States has proven supplies of natural gas in the ground, but France doesn't, the United States has what kind of advantage in terms of trade?

  A. Absolute advantage

  B. Comparative advantage   C. Natural resource advantage   D. Price advantage

Answer 1

Absolute advantageA. Absolute advantages

Answer 2

The answer is: A. Absolute advantage

Absolute advantage refers to a situation that make a country able to produce a certain type of product far more efficiently compared to other countries.

For example:

Between united states and France, United states would have absolute advantage over France in producing product such as natural gas, corns, Techs because America has larger quantity of natural resources and high quality skilled workers.