The pie chart illustrates the proportion of women in poverty based on four different family compositions of household in 2008, while the bar chart depicts the poverty percentage on men and women divided by sex and age, in the same period. Overall, it can be seen that single women with no dependent c...
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YAbsolute Advantage theory
Absolute Advantage theory NL6E2
Adam Smith coined the term "absolute advantage. " When a manufacturer can deliver an item or service in higher quantities for the same cost, or in the same amount at a lower cost than rivals, this is known as absolute advantage. In other words, if a country utilizes less resources to create a good, it has an absolute advantage over another country in producing that commodity.
Consider a hypothetical situation in which two countries, Saudi Arabia and the United States, both produce oil and maize. Assume that consumers in both nations anticipate being able to purchase both. The benefits of the two nations are shown in the table below, represented in the number of hours it takes to create one unit of an item.
Adam Smith coined the term
"
absolute advantage. "
When a manufacturer can deliver an item or service in higher quantities for the same cost, or in the same amount at a lower cost than rivals, this is known
as absolute advantage. In other words
, if a country utilizes less resources to create a good
, it has an absolute advantage over another country in producing that commodity.
Consider a hypothetical situation in which two countries, Saudi Arabia and the United States, both produce oil and maize. Assume that consumers in both nations anticipate being able to purchase
both. The benefits of the two nations are shown
in the table below, represented in the number of hours it takes to create one unit of an item. Do not write below this line
Official use only
CC
5.5
LR
6.5
GR
6.5
TA
5.5
OVERALL BAND SCORE
5.0
IELTS academic Absolute Advantage theory
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