- Individual
- exists when a person can produce more of a certain good/service than someone else in the same amount of time
- National
- exists when a country can produce more of a good/service than another country can in the same time period
Comparative Advantage
- Individual/National: exists when an individual or nation can produce a good/service at a lower opportunity cost than can another individual or nation
- Input Problems
- where the country who can produce a set amount of something by using the least amount of resources, land, or time has the absolute advantage
- chosen item / forgone item
- Output Problems
- who can produce the product the best
- what is given up / what is produced
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