How is absolute advantage found?
A)By comparing opportunity costs.
B)By calculating the dollar cost of production.
C)By comparing the productivity of one nation to that of another.
D)By first determining which country has a comparative advantage.

Question

Quizplus · Accepted Answer

Absolute advantage is found by comparing the productivity of one nation to that of another. It is determined by comparing the total output of each country for a specific good or service. The nation that can produce more output using the same amount of resources has an absolute advantage in the production of that good.

How Is Absolute Advantage Found