(3) Interdependence and the Gains from Trade

Question 1

the ability to produce a good using fewer inputs than another producer

Answer 1

absolute advantage

Question 2

whatever must be given up to obtain some item

Answer 2

opportunity cost

Question 3

the ability to produce a good at a lower opportunity cost than another product

Answer 3

comparative advantage

Question 4

goods produced abroad nd sold domestically

Answer 4

imports

Question 5

goods produced domestically and sold abroad

Answer 5

exports