Answer
Absolute advantage is concerned with the number of goods which can be produced by a country with a set quantity of inputs.
Comparative advantage is concerned with a country's opportunity cost.
Work Step by Step
With absolute advantage, we look at the amount of goods a country can produce in relation to another country. For instance, if Country A can produce 8 baskets and Country B can produce 6 baskets, Country A has an absolute advantage in baskets.
When it comes to comparative advantage, we consider the opportunity costs incurred by each country — the country which has a lower opportunity cost has the comparative advantage. For instance, if Country A forgoes 3/4 of a tractor to produce 1 printer and country B forgoes 1/2 of a tractor, Country B has a comparative advantage in printers because it is forgoing fewer tractors than Country A when it produces 1 printer.
