Absolute advantage refers to the ability to produce more of a given product using a given amount of resources. This concept, introduced by economist Adam Smith, indicates that a country (or individual) has an absolute advantage if it can produce a greater quantity of a good or service compared to others, using the same amount of resources.
What is absolute advantage?
the ability to produce a product most efficiently given all the other products that could be produced
the idea that a nation is better off when it produces goods and services for which it has comparative advantage
a good that is exported to another country for sale
the ability to produce more of a given product using a given amount of resources
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1 answer