Comparative and absolute advantage

Question 1

Absolute advantage

Answer 1

when you have the ability to outproduce others for a given product.

Question 2

Comparative advantage

Answer 2

when you produce goods and services at a higher level due to being able to produce the good or service the best of all the goods and services you produce even if others can produce them better

Question 3

Benefits of specialisation

Answer 3

1. learning by doing.
2. difference in skill.
3. economies of scale.