Question

Select the correct answer from each drop-down menu. The United States can produce 200 pillows in one week, while Spain and France produce 150 and 100 pillows, respectively, in one week. On the other hand, Spain can produce 10 televisions in one week, while the United States and France produce only 5 and 4 televisions, respectively. has an absolute advantage in producing pillows, and has an absolute advantage in producing televisions.

Answer 1

Answer:

The correct answers is:

The United States has an absolute advantage in producing pillows, and Spain has an absolute advantage in producing televisions

Step-by-step explanation:

Absolute advantage is a term of economics which can be defined as an ability of a person, company or country to produce a greater quantity of goods as compared to his competetors.

We can surely understand that in the pillows market, the United States has an absolute advantage as it is producing about 50 pillows more than Spain and 100 pillows more than France in one week.

Similarly, in the televisions market, Spain has the absolute advantage because Spain is producing 5 more televisions than United States and 6 more televisions than France in one week