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Question
the united states is said to have an absolute advantage in producing food compared with japan. what does that mean?
it must import most of its food from japan.
it produces food more efficiently than japan.
it produces food at a higher cost than japan.
it must export most of its food to japan.
The concept of absolute advantage in economics means a country can produce a good more efficiently (using fewer resources) than another country. Here, the US having an absolute advantage in food - production over Japan implies it produces food more efficiently.
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It produces food more efficiently than Japan.