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Question 1

Goods and services that a nation buys from other nations

Answer 1

Imports

Question 2

Goods and services that a nation sells to other nations

Answer 2

Exports

Question 3

A country can produce more of a product than another country

Answer 3

Absolute advantage

Question 4

Country’s ability to produce a product relatively more efficiently or at a lower opportunity cost

Answer 4

Comparative advantage

Question 5

Cost of the next best alternative use of money

Answer 5

Opportunity cost