What economic principle suggests that using fewer resources leads to a greater output?

The principle of absolute advantage is the correct concept that suggests that using fewer resources can lead to a greater output. This principle, introduced by Adam Smith, states that if a party (be it an individual, business, or country) can produce more of a good or service with the same amount of resources as another party, or produce the same amount with fewer resources, then that party has an absolute advantage in the production of that good or service.

This means that by specializing in the production of goods or services for which they have an absolute advantage, producers can make more efficient use of their resources. This efficiency often translates into a higher total output, benefiting both the producer and society as a whole.

In contrast, comparative advantage focuses on the ability to produce a good at a lower opportunity cost compared to others. While this also leads to efficiency and potentially greater overall output, it specifically emphasizes the benefits of specialization based on opportunity costs, rather than the resource efficiency highlighted by absolute advantage.

Opportunity costs represent the trade-offs involved when selecting one option over another and do not directly address the efficiency in resource use. Market equilibrium refers to a state in the market where supply equals demand, but it does not relate to resource optimization. Thus, among these concepts, absolute