Question

Define absolute advantage. in macroeconomic

Answer 1

Absolute advantage is defined as that scenario when a producer is able to produce a good or service in greater quantity for the same level of input. Refer the attached table

Output /day	Fish	Coconut
Tom	40	30
Hanks	20	20

From the above table we can see Tom can catch more number of fish and collect more number of Coconut in a day. Therefore, Tom has absolute advantage in catching fish as well as collecting coconut.

Similarly we can define this in case of two countries.