Absolute Advantage
-Individual - Exists when a person can produce more of a certain good/service than someone else in the same amount of time.
-National - Exisits when a country can produce more of a good/service than the other country in the same amount of time period.
Comparative Advantage
-Individual/National - when an individual or nation can produce a good/service at a lower opportunity cost than can another individual or nation.
*Input problems - This is where the country or individual can produce a set amount of something by using the least amount of resources, land, or time has the absolute advantage.
Chosen item
Forgone item
*output problem - looking at production, who can produce the best
What is given up
What is produced
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