Which of the following statements best illustrates the difference between absolute advantage and comparative advantage in the production of goods?

Absolute advantage refers to the ability of a person or country to produce more of a good or service with the same amount of resources compared to another. For example, if Country A can produce 10 cars using the same resources that Country B uses to produce 5 cars, Country A has an absolute advantage in car production. On the other hand, comparative advantage focuses on who can produce a good at a lower opportunity cost. For instance, if Country A gives up fewer other goods to make cars than Country B does, then Country A has a comparative advantage in car production, even if it has an absolute advantage. Understanding these concepts helps countries decide what to specialize in, leading to more efficient production and trade.