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.

In this example, the United States produces crude oil at a faster rate than any other country. This gives an absolute advantage to the United States, which means that the country would benefit from only focusing on the production of crude oil.

However, the availability and use of the resource might impact this advantage. The United States is a developed country, while country A is developing. This means that the United States needs more crude oil to support its industries. Potentially, this could mean that country A has an advantage, as it could export more of the oil it produces.

nikitavidya0 nikitavidya0 · Answer 2 · 2022-02-08T07:03:16+01:00

The US is seen as having an absolute advantage over country A in the production of crude oil.

What is an absolute advantage in production?

Absolute advantage implies having an advantage in producing total goods with given resources or fewer resources. Thus, the economy has the intention to produce at lower production costs compared to other economies.

Absolute advantage of the US over country A

The US is producing crude oil in 4 worker hours but country A is producing crude oil in 6 worker hours. Hence, the US would gain if all resources are derived in producing oil only.

Availability and use of the resource might impact this advantage

Country A is a developing nation while the US is a developed nation. It means the US would require more oil for supporting its industrial and other economic activities. Hence, country A would gain by exporting more oil to the US.

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