Empirical methods Prescriptive and policy In economics, the principle of absolute advantage is the ability of a party (an individual, or firm, or country) to produce a good or service more efficiently than its competitors.
[1][2] The Scottish economist Adam Smith first described the principle of absolute advantage in the context of international trade in 1776, using labor as the only input.
[3] The concept of absolute advantage is generally attributed to the Scottish economist Adam Smith in his 1776 publication The Wealth of Nations, in which he countered mercantilist ideas.
[3] Smith also stated that the wealth of nations depends upon the goods and services available to their citizens, rather than their gold reserves.
You and your friends decided to help with fundraising for a local charity group by printing T-shirts and making birdhouses.