Onwards

Question 1

Opportunity cost

Answer 1

The cost of an activity expressed in terms of the next best alternative which has to be given up when making the choice

Question 2

Absolute advantage

Answer 2

Being able to produce more of something than another country

Assuming both have the same amount of resources/ factors of production

Question 3

Comparative advantage

Answer 3

Being able to produce something at a much lower opportunity cost than another country
Assuming all fop available