The capability of one nation to produce more of a good with the same amount of input than another country is a/an __________ __________.

Question

Quizplus · Accepted Answer

Absolute advantage is the ability of a nation to produce more output of a particular good or service with the same resources (input) as another nation. Comparative advantage, on the other hand, refers to the ability of a nation to produce a good or service at a lower opportunity cost than another nation. Mercantilist and capitalist advantages are not commonly recognized economic terms.

The Capability of One Nation to Produce More of a Good