Ithilium, a European country, is able to produce more electronics than Kilim, a North American country, even though both countries use the same amount of resources. Given this information, it can be deduced that Ithilium has a(n):

A. comparative advantage over Kilim.
B. higher trade surplus than Kilim.
C. absolute advantage over Kilim.
D. higher balance of payments surplus than Kilim.


Answer: C

Business

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