Question

How do comparative advantage and absolute advantage differ? A) Absolute advantage means more can be made given the resources while comparative advantage means the good may be made cheaper given the other items that could also be produced. B) Absolute advantages is a relative concept when comparing production of different items, and comparative advantage means a country is better at at one particular good. C) Comparative advantage implies a country is better at producing everything better than another country and absolute advantage means they're better at a few things. D) Comparative advantage refers to production of agricultural goods while absolute advantage refers to industrial production.

Answer 1

Answer:

Absolute advantage means more can be made given the resources while comparative advantage means the good may be made cheaper given the other items that could also be produced.

Option: (A)

Explanation:

'Absolute advantage' and 'comparative advantage' are two different concepts.

• Absolute advantage is the capacity for the production of goods more than others using the 'same amount of resources available'.

• In the same manner, comparative advantage is focused in the 'production of goods and services' with much 'lower opportunity cost' than the other competitors.

Answer 2

Answer: A

Explanation: Usatestprep