Which quality best describes a producer with an absolute advantage?

• A. Prolific
• B. Accurate
• C. Fast
• D. Efficient

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of absolute advantage. In microeconomics, a producer has an absolute advantage if they can produce more output using the same amount of resources compared to others.
2. Step 2: Recognize that absolute advantage focuses on productivity and efficiency in production, meaning the producer can generate a higher quantity of goods or services.
3. Step 3: Analyze the given options: 'Prolific' means producing a lot, which relates to quantity; 'Accurate' relates to precision, not quantity; 'Fast' relates to speed, which can affect quantity but is not the direct economic term; 'Efficient' means producing maximum output with minimum input, closely related to absolute advantage.
4. Step 4: Connect the term 'Efficient' to the definition of absolute advantage, as it best captures the idea of producing more output with the same resources.
5. Step 5: Conclude that the quality best describing a producer with an absolute advantage is 'Efficient' because it aligns with the economic definition of producing more with the same inputs.