Examlex
Wing Tung is reading his textbook for history class. At the end of each paragraph, he stops and asks himself what the paragraph was about. Once he feels like he knows that, he goes on. Wing Tung is using ____ to improve his thinking.
Absolute Advantage
Refers to the ability of a country, company, or individual to produce a good or service at a lower cost per unit than any competitor using the same amount of resources.
Comparative Advantage
The ability of a country or firm to produce a certain good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.
Absolute Advantage
The ability of a country or entity to produce a good or service more efficiently than its competitors, leading to greater output with the same input of resources.
Comparative Advantage
The ability of an entity to produce a good at a lower opportunity cost than another, leading to potential trade benefits.
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