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

Question

Business

Blaze Cunningham

14 December, 01:25

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

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Answers (1)

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Archer · Answer 1

The correct answer is option A.

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.