Distiguish Between Absolute and Comparative Advantage

Question 0

Comparative advantage definition…

Answer 0

Developed by Ricardo- where one country can produce a good or service at a lower relative opportunity cost than others- it sacrifice less resources in production

Question 1

Absolute advantage definition…

Answer 1

Where one country is able to produce more of a good or service with the same amount of raw materials than another, so unit cost is lower