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

The correct answer would be B: It produces food more efficiently than Japan

Answer 2

It produces food more efficiently than Japan.

Step-by-step explanation:

Given that an ABSOLUTE ADVANTAGE is when a country or company can produce the same quantity of goods more efficiently than another country or company with lesser input or produce more quantities of goods with more efficiently with the same input.

Hence, in this case, when it is said that the United States has an absolute advantage in producing food compared with Japan, it means that "It produces food more efficiently than Japan."