What does the principle of Absolute Advantage refer to ?

CA Foundation · Business Economics · PYQS · September 2024
What does the principle of Absolute Advantage refer to ?
(A) A. The ability to produce a greater quantity of a goods using the same amount of resources as competitors
(B) B. The ability to produce a greater quantity of a goods using fewer resources
(C) C. The ability to produce a lesser quantity of a goods using the same amount of resources as competitors
(D) D. The ability to produce a greater variety of goods than competitors

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. The ability to produce a greater quantity of a goods using fewer resources

Topics: International Trade

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