Question

Complete the following sentence in atleast three sentences

I can distinguish between absolute advantage and comparative advantage because

Answer 1

[AI-generated answer — Bot GPT 3.5]

Absolute advantage refers to a country's ability to produce a good or service more efficiently than another country can, using fewer resources. Comparative advantage, on the other hand, is the ability of a country to produce a good or service at a lower opportunity cost compared to another country. I can distinguish between the two because absolute advantage is based on productivity levels, while comparative advantage takes into account opportunity costs and allows for mutually beneficial trade between countries.