1. Discuss the difference between comparative advantage and absolute advantage.

The capacity to generate more or better products and services than others is referred to as
absolute advantage. The capacity to create goods and services at a lower opportunity cost,
rather than necessarily at a higher volume or quality, is referred to as comparative advantage.
2. Discuss one-factor economy.
3. Discuss the Ricardian Model.
4. What is opportunity cost? Discuss by giving an example.
5. What is production possibility frontier? Discuss by giving an example.