Which statement describes absolute advantage?

• A. The ability to produce at a lower opportunity cost than another producer.
• B. A situation where a producer can produce everything with fewer resources and faster.
• C. The ability to produce more of a good than another producer using the same amount of resources.
• D. The maximum total output possible with given resources.

Answer: (C)

Absolute advantage is about productivity: when two producers have the same resources, the one that can produce more of a good is said to have the absolute advantage in that good. This is a straightforward comparison of output given equal inputs.

So, the statement that describes this is the one that says you can produce more of a good using the same resources. It doesn’t involve comparing opportunity costs (that’s comparative advantage), nor does it claim someone can produce everything with fewer resources or that they can produce the maximum possible output of all goods. It’s specifically about higher output of a single good with the same inputs. For example, if one producer makes more units of a good using the same resources as another, that producer has the absolute advantage in that good.