Question

Absolute advantage is best defined as:

being able to make more of a product than a competitor.
being able to use fewer resources than a competitor.
being able to produce more efficiently than a competitor.
being able to create a product with a higher opportunity cost than a competitor.

Answer 1

Answer: being able to use fewer resources than a competitor.

Explanation: Absolute advantage means producing a given good with fewer inputs (or producing more with the same inputs). It differs from comparative advantage, which is about lower opportunity cost.