Absolute advantage is defined as
A)the ability to produce more output of one good relative to another good than another country can.
B)the ability to produce more output from given inputs of resources than others can.
C)the ability to use more input of resources than others can.
D)having a lower average fixed cost in the production of a good than does someone else.

Question

Quizplus · Accepted Answer

Absolute advantage means being able to produce more output with a given amount of inputs. It is not related to the ability to use more inputs or having lower production costs, as in options C and D. Option A describes comparative advantage, which is different from absolute advantage.

Absolute Advantage Is Defined as