Absolute advantage is found by comparing different producers' ability to:

• A. trade goods and services with other producers
• B. produce more of a good or service with the same amount of resources
• C. produce a good at a lower opportunity cost than others
• D. specialize in the production of a single good

Answer: (B)

Verified step by step guidance

1. Understand the concept of absolute advantage: it refers to the ability of a producer to produce more output of a good or service using the same amount of resources compared to others.
2. Compare the options given: identify which one aligns with the definition of absolute advantage.
3. Recall that producing a good at a lower opportunity cost than others is the definition of comparative advantage, not absolute advantage.
4. Recognize that specializing in the production of a single good relates to the principle of specialization, which is connected but distinct from absolute advantage.
5. Conclude that absolute advantage is about producing more of a good or service with the same resources, which matches the correct answer.