Question

Absolute advantage is...

A. The ability of a Country to produce a good using fewer productive inputs than is possible anywhere else in the world
B. The ability of a Country to produce a good using more productive inputs than is possible anywhere else in the world
C. The ability of a Country to produce a good independenty of how much productive inputs to employ in producton
D. The same as comparative advantage

Answer 1

The correct answer is option A.

Step-by-step explanation:

Absolute advantage can be defined as the ability to produce a commodity using comparatively fewer inputs than others.

Comparative advantage, on the other hand, refers to the ability to produce a commodity at a relatively lower opportunity cost than others.

A country is said to be having an absolute advantage in the production of a commodity if can produce the same level of output using fewer resources or time.