alleryA country produces more than its neighbour because it has richer soil and better machines. Those are sources of:
AMarket failure risk
BAbsolute advantage
CTrade deficit gap
DPrice ceiling rule
Answer & Solution
Correct answer: B. Absolute advantage
1. Resources and endowment are the reason.
2. The country can simply produce more.
3. They give absolute advantage.
_Source: OpenStax Principles of Economics 3e, Chapter 33, International Trade._
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