One Region Is Said to Have an Absolute Advantage Over

Multiple Choice

One region is said to have an absolute advantage over another region in the production of good X when

A) the first region has a more productive labour force than the second.
B) the first region has a larger supply of the raw materials required to produce good X.
C) an equal quantity of resources can produce more of good X in the first region than in the second region.
D) there is no demand for good X in the second region.
E) the opportunity cost of one unit of X is lower in the first region than in the second region.