Absolute advantage is when one person or group is objectively better at doing or making something, while comparative advantage is when a person or group is better than another person or group at doing or making something.

If you can wash 15 cats a day, while everyone else can only manage washing two, you have an absolute advantage in cat washing. Absolute advantage, however, does not determine what you should do or not do; that depends on your comparative advantage.

Absolute advantage is different from your comparative advantage in deciding what career to pursue. If, for example, you can wash 15 cats a day and another person washes 14 cats a day, but you can fix five cars and they can only fix one, they may have a comparative advantage in cat washing. If you focus on your cat-washing skills, then the result will be 15 clean cats and one working car. If, however, you fix cars, then the world is a better place with one fewer clean cat and four more working cars a day.

Comparative advantage is found not by looking at what you are best at, but rather what is lost by you not doing something else. Economists call this the 'opportunity cost' of your choice not to specialize.

Trade and economies depend on individuals and groups specializing on particular tasks or products and trading with others. The way individuals or groups determine what course of action to take is dependent on their absolute advantage and comparative advantage.