Which concept refers to a country producing more output than others with the same input?

The concept of absolute advantage refers to the ability of a country to produce more of a good or service with the same quantity of inputs compared to other countries. This means that if two countries have the same resources, the one that can produce more output is said to have an absolute advantage in that particular good or service.

In this context, absolute advantage highlights the efficiency with which a country can use its resources compared to others. It emphasizes productivity levels without considering opportunity costs. For instance, if Country A can produce 10 units of a product with the same resources that Country B uses to produce 5 units, Country A has an absolute advantage in producing that product.

Comparative advantage, another important concept in international trade, focuses on the relative opportunity costs of producing goods, rather than the sheer output potential. The Gini coefficient measures income inequality within a country and is not relevant to the context of output. Factor endowment refers to the resources and factors of production a country possesses, influencing its ability to generate output, but it is not a measure of output efficiency itself.

Therefore, understanding absolute advantage is crucial for analyzing the production capabilities of countries and determining trade patterns based on efficiency.