1. Gains from Trade

Question 1

A graph that displays a relation between what can be produced given the current resources; not what is good or bad

Answer 1

Production Possibilities Curve/Frontier

Question 2

When you have a lower opportunity cost than something/someone else; not when you are better at something

Answer 2

Comparative Advantage

Question 3

You are better at something than someone else, opportunity cost does not matter,

Answer 3

Absolute Advantage