QuestionDecember 14, 2025

10. If Italy produces leather goods more efficiently than Germany, then Italy has a(n) a. service advantage over Germany b. absolute advantage over Germany c. comparative advantage over Germany d. agricultural advantage over Germany

10. If Italy produces leather goods more efficiently than Germany, then Italy has a(n) a. service advantage over Germany b. absolute advantage over Germany c. comparative advantage over Germany d. agricultural advantage over Germany
10. If Italy produces leather goods more efficiently than Germany, then Italy has a(n)
a. service advantage over Germany
b. absolute advantage over Germany
c. comparative advantage over Germany
d. agricultural advantage over Germany

Solution
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Answer

b. absolute advantage over Germany Explanation 1. Identify the type of advantage described Producing more efficiently refers to using fewer resources for the same output, which is absolute advantage. 2. Match with answer choices Absolute advantage means producing a good with fewer inputs than another country.

Explanation

1. Identify the type of advantage described<br /> Producing more efficiently refers to using fewer resources for the same output, which is absolute advantage.<br />2. Match with answer choices<br /> Absolute advantage means producing a good with fewer inputs than another country.
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