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AP® Microeconomics

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Absolute Advantage: iPhones

APMICR-EXNR4H

The table below represents the length of time that it takes China and the United States to produce a bushel of wheat or one iPhone.

Country Wheat iPhones
United States 3 hours 1 hour
China 8 hours 2 hours



Based on the table, which country has the absolute advantage in producing iPhones?

A

China, because it can produce iPhones with a lower opportunity cost

B

United States, because it can produce iPhones with a lower opportunity cost

C

China, because it can produce iPhones using fewer resources

D

United States, because it can produce iPhones using fewer resources

E

Neither, because technology to produce iPhones changes too rapidly for any country to have an advantage