China is the world’s largest producer of rice. Key Points The producer that requires a smaller quantity inputs to produce a good is said to have an absolute advantage in producing that good. Absolute advantage compares industry productivities across countries. Specialization refers to a country’s decision to specialize in the production of a certain good or list of goods because of the advantages it possesses in their production. Definition. Absolute advantage can be determined by comparing different producers' ____. 2) Absolute advantage is found by comparing different producers a. opportunity costs. That’s because different producers have different opportunity costs. Definition. ____21.Absolute advantage is found by comparing different producers’ a. opportunity costs. By looking at the inputs required for producing a unit of output, it is possible to determine which country has the highest productivity. See the answer. b. payments to land, labor, and capital. Input requirements per unit of output. Comparative and absolute advantage may evolve differently over time. The first of these is known as an absolute advantage, and it refers to a country being more productive or efficient in producing a particular good or service.. Comparative advantage shows which producer is more efficient in its production of a certain item and is found by discerning which party has a lower opportunity cost, which is dependent on the ratio of output/input. Dividing up chores with your partner? Using resources to produce a particular good or service means that those resources cannot be used to produce something else. “Even if a developing country lacks an absolute advantage in any field, it will always have a comparative advantage in the production of some goods,” and will trade profitably with advanced economies. c. input requirements per unit of output. Country B is 3.5 times better at trucks, and only 1.17 times better at cars. The correct definition of the term, "comparative advantage" The ability to produce a good/service at a lower opportunity cost than another. Choosing your career path? c. input requirements per unit of output. Zero, One, Two: Term. Now the first country has a comparative advantage in oil. Absolute Advantage is the ability with which an increased number of goods and services can be produced and that too at a better quality as compared to competitors whereas Comparative Advantage signifies the ability to manufacture goods or services at a relatively lower opportunity cost. Expert Answer 97% … If different producers have different relative abilities, everyone can benefit from specializing. a L C < a L C ∗ or if. c) labor hours used to produce a standardized product in each country. payments to land, labor, and capital. A country has an absolute advantage in producing a good over another country if it uses fewer resources to produce that good. In International trade, absolute advantage and comparative advantage are widely used terms. I like the stock a lot. b. payments to land, labor, and capital. It is also the first country in the world to successfully produce hybrid rice, bred from two different types of plants. Absolute advantage is when a producer can produce a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than other producers. Answer: View Answer. This problem has been solved! Absolute advantage can be determined by comparing different producers\' _____ Show transcribed image text. The principle of absolute advantage builds a foundation for understanding comparative advantage. The absolute advantage theory provided the view about the capacity and control in terms of competitive landscape for international trade among the countries. 5. The neighbor is willing to trade a lot of food in exchange for oil. 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