Assume the United States and Australia have the same amount of resources. In a given time period, the United States can produce 2 tons of beef or 200,000 cars. Australia can produce 1 ton of beef or 100,000 cars. This means that
A. Australia has an absolute advantage in both beef and cars.
B. Australia has a comparative advantage in cars.
C. The United States has an absolute advantage in both beef and cars.
D. The United States has a comparative advantage in beef.
Answer: C
Economics
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