Economics Part A

Understanding What is Absolute Advantage

The term absolute advantage is often used in the following context: Country A has an absolute advantage over Country B if Country A can produce more of both products than Country B. For example, if Country A can produce 1,000 cars and 2,000 plows, and country B can produce 10 cars and 20 plows, then Country A is said to have an absolute advantage over Country B.

Absolute Advantage

Understanding What is Absolute Advantage578Understanding What is Absolute Advantage