IB International Economics Higher Level (HL) Practice Exam

The graphical representation that is commonly used to illustrate absolute advantage is a linear Production Possibility Curve (PPC) with straight lines crossing. This type of PPC effectively helps visualize the concept of absolute advantage, which occurs when one producer can produce more of a good or service with the same amount of resources compared to another producer.

In this case, if producers A and B both have linear PPCs, the straight lines indicate constant opportunity costs associated with producing the two goods. The point where their PPCs cross can denote the quantity of goods each can produce, highlighting the differences in productivity. This format allows for a clearer understanding of which country or entity holds the absolute advantage in producing certain goods based on their production capabilities.

Other graphical representations, such as curved PPCs, would indicate varying opportunity costs and are more commonly used to illustrate comparative advantage rather than absolute advantage. A three-dimensional trade graph typically illustrates more complex relationships or dynamics in trade and may not convey absolute advantage as directly. A bar chart of production outputs could provide quantitative data but is less effective at illustrating the interaction and efficiency in production choices like the linear PPC does.