Question

If country abc can produce a unit of good 1 with fewer resourceswith fewer resources than can country​ xyz, it is correct to say that country abc

Answer 1

Country ABC shows that it has ABSOLUTE ADVANTAGE over Country XYZ.

The absolute advantages is proven when Country ABC was able to produce a unit of good 1 with fewer resources than Country XYZ.

Absolute advantage is different from comparative advantage.

Comparative advantage deals with opportunity cost. If a country is able to produce goods at lower opportunity cost than its trading country, then, it has comparative advantage.