How is absolute advantage found?
A) by comparing opportunity costs
B) by calculating the dollar cost of production
C) by comparing the productivity of one nation to that of another
D) by first determining which country has a comparative advantage

Question

Quizplus · Accepted Answer

Absolute advantage is found by comparing the productivity of one nation to that of another. It is determined by looking at which country can produce more of a given product using the same amount of resources. This means that the country with the highest productivity is said to have an absolute advantage in producing that good.

How Is Absolute Advantage Found